‘Profiteers of Misery’: The U.S. Private Prison Industrial Complex
By the end of 2010, the United States was home to 25 percent of the world’s inmates, with roughly 2.4 million people behind bars and over seven million under "correctional supervision".
In any given year, 13 million people pass through the U.S. detention system, which includes federal and state facilities; Native American, juvenile, military and local jails; U.S. detention centres overseas and holding centres operated by Immigration and Customs Enforcement (ICE).
Elsie Scott, president of the Black Congressional Caucus, said at a press conference in D.C. earlier this year that the bill for housing prisoners was astronomical - at nearly 68 dollars a day per person.
In her book ‘The New Jim Crow: Mass Incarceration in the Age of Colorblindness’, Michelle Alexander writes that even with crime rates on the decline, the U.S. prison population quintupled in just two decades, between 1980 and 2010.
It would seem that the case for reducing incarceration rates could not be stronger - especially for taxpayers and state and federal governments.
However, one group of people has a vested interest in keeping prisons as full as possible - the private prison corporations and their shareholders.
According to a recent report by the Justice Policy Institute, the U.S.’s two largest private prison companies - Corrections Corporation of America (CCA) and GEO Group - pocketed collective annual revenues of 2.9 billion dollars at the close of 2010.
The report, called ‘Gaming the System’, also found that since 2000, the number of prisoners held in private federal facilities increased by 120 percent, while those detained in private state facilities shot up by 33 percent - even though the same time period showed a mere 16 percent increase in the total prison population.
The report states, "While private prison companies may try to present themselves as just meeting existing ‘demand’ for prison beds and responding to current ‘market‛ conditions, in fact they have worked hard over the past decade to create markets for their product… As revenues of private prison companies have grown over the past decade, the companies have had more resources with which to build political power, and they have used this power to promote policies that lead to higher rates of incarceration."
Prison corporations make no secret of their strictly business approach to the justice system or the victims of its harsh penalties.
CCA’s 2010 annual report states categorically that, "The demand for our facilities and services could be adversely affected by the relaxation of enforcement efforts, leniency in conviction or parole standards and sentencing practices or through the decriminalization of certain activities that are currently proscribed by our criminal laws - for instance, any changes with respect to drugs and controlled substances or illegal immigration could affect the number of persons arrested, convicted, and sentenced, thereby potentially reducing demand for correctional facilities to house them."
CCA continues, "Legislation has been proposed in numerous jurisdictions that could lower minimum sentences for some non-violent crimes and make more inmates eligible for early release based on good behaviour, (while) sentencing alternatives under consideration could put some offenders on probation who would otherwise be incarcerated. Similarly, reductions in crime rates or resources dedicated to prevent and enforce crime could lead to reductions in arrests, convictions and sentences requiring incarceration at correctional facilities."
In effect, the private prison industry creates both demand for and supply of prisoners in order to sustain an ever-expanding market for their "products and services" - all the while raking in enormous profit - at the expense of primarily minor offenders who might otherwise be granted a second chance at freedom.
Given that a full 50 percent of the U.S.’s prisoners are jailed for non-violent drug-possession charges - most of them young African American men - while one million immigrants have passed through ICE’s detention and deportation systems since President Barack Obama came to power in 2008, racial justice and immigrant rights groups are at the forefront of the struggle against private prison systems.
In May, when the governor of Georgia passed Senate Bill 87 - its version of Arizona’s notorious anti- immigration law - rights groups were quick to point the finger at for-profit prisons and their lobbyists for sponsoring what many experts have called some of the harshest, most racially charged immigration legislation in recent history.
At the time, Larry Pellegrini, executive director of the Georgia Rural Urban Summit, noted that CCA had a strong lobbying presence in the Georgia legislature. He added that passage of Senate Bill 87 was part of a national effort brought together by the conservative American Legislative Exchange Council (ALEC) - a task force that included a representative from a private prison company and was instrumental in drafting Arizona’s Senate Bill 1070.
Meanwhile, the report found that in 2010 alone CCA, GEO and Cornel Companies - the third largest prison corporation - doled out over two million dollars on state politics, including monies to senators, federal candidates and members of the House of Representatives.
While rights groups and advocacy organisations are largely powerless against the bulging wallets of the private prison lobbyists, a new strategy has emerged to fuel the movement against corporate greed.
Enlace, an alliance of low-wage worker centres, unions, and community organisations in the U.S. and Mexico that wage international campaigns against "abusive transnational corporations", is currently embarked on a Prison Industry Divestment Campaign to break private prisons’ stranglehold on the justice system.
"We were initially fighting for the rights of economic refugees who flooded the U.S. to escape the consequences of disastrous banking policies imposed on Mexico by U.S. banks like Bank of America and Chase in 1995," Peter Cervantes-Gautschi, the executive director of Enlace, told IPS. "By raising interest rates in Mexico to astronomical levels, these banks essentially forced millions of people out of their jobs and homes, causing them to flee to the U.S. only to find a huge anti-immigrant movement fuelled largely by for-profit prisons - and behind them, the same financial services sector that caused the crisis in Mexico to begin with."
"Companies like Wells Fargo, General Electric, Fidelity Investments - these are the major funders of the private prison industry in the U.S.," Cervantes-Gautschi said. "So we are now calling on all institutions both public and private to divest support from this industry… There is no need for it - incarcerating people for profit is simply not an acceptable business."
"Most people who have investments - whether through a pension or 401K or church donation - have them in the private prison industry without knowing it," he added. "So people need to tell their investors to take their money out of private prison companies."
"Just like people all over the world joined the divestment movement against apartheid South Africa in the 1980s, we are building support to bring an (end) to a system that is costing tax payers millions, while at the same time causing a huge amount of suffering - and this is really indefensible," he concluded.
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15 comments on "‘Profiteers of Misery’: The U.S. Private Prison Industrial Complex"
etvpfij
October 30, 2011 12:43am
Who cares?!? Look at all the crimes blacks and Mexicans commit WAY out of proportion to their populations. The flash mobs, drugs, gangs, etc... Do you think they are ever going to reform?!? HELL NO! There is no reform.Locking criminals up is an expensive proposition, especially if you consider the high recidivism rate of criminals. If private prisons can make a profit and take some of the burden off individual cash strapped states, so much the better. If the judge gives someone 20 years, they should do every second of that 20 years at hard labor/14 hours a day. If they lay a hand on another prisoner, they are subject to execution. Let the punishment be real, not the garbage going on today.
I don't agree with having private prison cas people who ate in prison should not have a private life
October 04, 2011 10:31pm
Any defense lawyer can tell you that trying to defend a prisoner is 10x as hard as a bonded respondent, because every contact takes that much more effort, and evidence is harder to locate, and you work on a greatly accelerated schedule. Many misdemeanor convictions require mandatory detention under 8 usc 1226(c).
August 25, 2011 9:39pm
In 2000, the industry was carrying more than $1 billion in debt and was violating its existing credit agreements. CCA saw its stock plummet 93 percent and Business Week noted that the correction “industry’s heyday may already be history.”At the time, the American Prospect, a national magazine, explained the decline:“The private-prison industry is in trouble. For close to a decade, its business boomed and its stock prices soared because state legislators across the country thought they could look both tough on crime and fiscally conservative if they contracted with private companies to handle the growing multitudes being sent to prison under the new, more severe sentencing laws. But then reality set in: accumulating press reports about gross deficiencies and abuses at private prisons; lawsuits; million-dollar fines. By last year, not a single state was soliciting new private-prison contracts. Many existing contracts were rolled back or even rescinded. The companies’ stock prices went through the floor.”Then came the the September 11th attacks on New York in 2001. The government began to target non-citizens with mass arrests during sweeps through immigrant communities, increased prosecutions of undocumented border crossers, and the use of immigration law to hold people while looking for criminal or terrorist charges against them. The INS was subsumed into a new agency named the Department of Homeland Security.The government claims that locking up people without legal status is the only way to ensure that they do not disappear into the country. A December 2004 DHS report from the Office of the Inspector General concluded that all the evidence proved the “importance of detention in relation to the eventual removal of an alien. Hence effective management of detention bed space can substantially contribute to immigration enforcement efforts.”The speed and scope of the Bush administration round up and jailing of non-citizens created a dramatically increased need for immigrant detention space. And saved the flailing corrections industry.The DHS-run Special Processing Center is a massive one-stop-shop, where immigrants can be jailed, tried in an immigration court, appealed before an immigration judge, and ordered deported—all without leaving the self-contained complex. While DHS does not refer to its facilities as jails, the Special Processing Center in Florence is ringed by concertina wire, surrounded by chain-link fences, with inmates locked into cells. They face zealous prosecution and in many cases are left to languish for weeks and months without trial or sentencing.The complex in Florence is part of a 300-facility-strong network of immigrant incarceration facilities. The average time an immigrant is detained is 42.5 days from arrest to deportation. At $85 a day per detainee, that adds up to $3,612.50 per person. In 2003, DHS was holding 231,500 detainees, and the budget to cover this was $1.3 billion. Since 2001, the DHS budget for detention bed space has increased each fiscal year as has the number of beds. In 2003 there was more than $50 million slated for the construction of immigrant jails.
August 25, 2011 8:04pm
That comes to roughly $59.568,000,000 which in words is over 59.5 billon dollars.
When they come out, they are often no better able to be productive citizens than they went in. A large number of them are dysfunctional vets down on their luck. Are we ready to be a nation of responsible people yet or not. Responsible means that we care for all the community not just our own personal culture.
August 25, 2011 3:05pm
I remember a 3rd page headline back around year 2000 announcing that Barbara Bush was investing heavily in contract imprisonment services. That was the handwriting on the wall. Not long afterward her boy George was selected (not elected) as president, and the growth of contract prison services has been astronomical ever since.
August 25, 2011 2:09pm
Privatizing prisons (and health care) follows the twisted and brutal logic of the fascist Amerikan economic model that puts profits above all else. Profits are the new golden idol in the religion of greed.It's way past due for the people to be in the streets demanding a new constitution that re-establishes the Bill of Rights and habeas corpus and ensures no secret gulags, single-payer health care, a free college education, a living wage, a decent pension and publicly funded federal elections.
August 25, 2011 7:58pm
Well said !
JFJ
August 25, 2011 2:59pm
Tom I love the way you put it, "... the religion of greed!" I couldn't have said it better myself... God help us all!!
August 25, 2011 1:42pm
Makes dollars and cents when for-profit prisons have incentives to incarcerate. Take a look at what happen to all those juveniles in Pennsylvania who's lives will be forever changed!
August 25, 2011 1:00pm
Justice and punishment are not synonymous. Does ayone else remember back, say before 1980, when it was called crime prevention? Then a certian, possibly senile, fellow became president and everything became LAW ENFORCEMENT.
First, Crime Prevention keeps people from being victims but does not help keep funds going to police forces.
Second, Law Enforcement allows people to be hurt and then punishes the offender creating a culture of revenge.
Punishment, at the level of the removal of individual rights, must be administered by the will of the people via government, not the whim of the pocket and private interests. Anything else is illegitimate and inevitibly will be abused for profit at the expense of us all. This is shown in the article. Remember we created government to protect us from individuals out for thier own interests, you like Kings, Robber Barrons and Billionaires.
August 25, 2011 3:14pm
I'm a retired police officer & I agree with your comment. The U.S. justice system & public education sytem stinks with foul odor because of corporations involvement with government. It's time to get corps./special interest lobbyists out of the government business...
August 25, 2011 11:52am
It never fails to annoy me how low politicians will sink---trading in commodities is one thing, making that commodity human beings is quite another. One can only hope and pray that heavy investors in the PIC and the politicians that trade in human flesh will one day get the karma they so richly deserve.
August 25, 2011 11:52am
It never fails to annoy me how low politicians will sink---trading in commodities is one thing, making that commodity human beings is quite another. One can only hope and pray that heavy investors in the PIC and the politicians that trade in human flesh will one day get the karma they so richly deserve.