Outlawed at the beginning of the 20th Century, private corporations are once again owning and operating prisons for profit. A controversial issue which dates back to the days that followed the Emancipation Proclamation, CORRECTIONS examines its re-appearance today amidst globalization and the most awesome growth of prisons in all of modern history, painting a complex portrait of what many are calling the "prison industrial complex."


In the mid-1980's, fifteen years of massive and unprecedented growth within the US prison system hit a snag -- it ran out of money.

When the state wants to build a new prison, it traditionally asks the voters to approve the cost through a bond issue. But this time, voters throughout the country began to say no.

So many turned to private investment, to venture capital, both to fund new prison projects and to run the prisons themselves for costs around $30 to $60 per bed, per day. This began what we know today as the for-profit, PRIVATE PRISON INDUSTRY.



1970 : 280,000 prisoners | 2000 : 2,000,000 prisoners

In the late 1960's, the US began to expand the powers of law enforcement agencies around the country, generating by the 1970's an unprecedented reliance on incarceration to treat its social, political, economic and mental health problems.

By calling new acts crimes, and by increasing the severity of sentencing for other acts, US citizens witnessed a "prison boom." Soon, prison overcrowding surpassed prison construction budgets, and politicians that had promised to build new prisons could no longer build them.

So in 1984, a number of Tennessee investors with close friends in the legislature recognized a business opportunity and formed CORRECTIONS CORPORATION OF AMERICA (CCA). Their plan was to use venture capital to build a new prison and -- like a hotel -- lease their beds to the state in a profit-making endeavor.

Today, nearly ten percent of US prisons and jails (meaning 200,000 prisoners) have been privatized, the three largest firms being CCA, WACKENHUT CORRECTIONS CORPORATION and CORNELL CORRECTIONS, INC. The federal government also contracts with them to house a growing number of undocumented immigrants and resident aliens, while some of the companies have facilities in countries outside the USA.

Correctional Corporations have amassed large political influence through government ties, lobbying power and campaign contributions, while attempting to convert the discourse of justice into the language of the marketplace. In this way, they accuse government agencies as having a monopoly on corrections, espouse the need to downsize and cut through red tape. They claim that they can run prisons more efficiently and cheaper, doing a better job and saving the taxpayers money.




At the same time, prison privatization has met severe criticism. From human rights activists to criminologists, economists, religious and community leaders and even correctional officers' unions, privatization has been accused of corruption, corrosive incentives, and a resemblance to a historically racist practice of the old confederate U.S. South: CONVICT LEASING.

Some claim that private prisons really don't save money, but like any for-profit business, attempt to maximize their own profit. This results in a reduction of essential services within the prison -- from medical care, food and clothing to staff costs and security -- at the endangerment of the public, the inmates and the staff.

Other critiques are concerned with the power and influence of for-profit prisons. At a time when much of public discourse is questioning the war-on-crime and the war-on-drugs being fought as wars, critics claim that the incentive of profit skews public discourse away from reasoned debate about viable solutions to social problems.

And finally, grasping the demographic make-up of today's prisons in the US and the history that's produced this make-up (roughly 50% African-American, 35% Latino and 15% White), the privatization of prisons threatens to re-institute a link between race and commerce that has not been seen since the 1800's.



There are also different ways that those who make the laws profit from the laws they make through prison privatization.

The most direct are those who own stock in private prisons, such as former Tennessee Governor and his wife, Lamar and Honey Alexander, who owned stock in the early Corrections Corporation of America. There are also those officials who are on the actual payroll of these corporations, such as Manny Aragon, the New Mexico legislator who Wackenhut hired as a lobbyist for New Mexico when they were trying to begin privatization in that state.

A third way comes from campaign contributions and political action committee moneys, through which the corporations financially reward those officials that allow private prisons in their states or jurisdictions, or who pass laws that will continue prison expansion -- public or private -- thus expanding the resource base of the privatization industry. (These are often the same law makers who are handsomely rewarded by public sector groups such as correctional officers' unions and other law enforcement groups, who also profit from criminalization and mass imprisonment).

Less directly, the privatization of prisons contributes to and buoys the overall "culture" of law enforcement and criminal justice, one that levels our common sense understanding of the causes of our social problems and puts as their solution responses of violence, force and containment. By expanding the criminal justice system beyond the grasp of elected officials and civil servants, private prisons grow this culture in ways that are both ideological and practice-related.

The private sector also serves as a "career alternative" for many, hiring bureaucrats and officials from the public sector who are either looking for a raise and stock options, or are looking to come out of retirement. These include people from the FBI, CIA, various state and federal departments of corrections, sheriffs, and even former attorney generals.

And most importantly, public officials profit from prison privatization as it allows them to act with less accountability to the public, allowing prisons to be built without passing prison bonds for the public to vote on, and not having to worry how one will budget their inflammatory and expensive tough-on-crime rhetoric.


Louisiana State Secretary of Corrections, Richard Stalder, cuts the ribbon to kick off the burgeoning 1999 American Correctional Association Trade Show.



Although the predominant myths about PRIVATIZATION (whether of prisons or anything else) claim that privatization means tax savings for the public, it actually costs us more. Even though on paper a private agency or corporation may present a lower figure to do the same job, once that money has been taken out of the public's hands, it no longer remains ours.

In the public sector, tax money tends to make more of itself, meaning that each public dollar paid through one social service will spend itself four to eight times more elsewhere within the public sector. Once public money goes into private hands however, that money stays there and is gone for good. This is especially true if we consider that privatization corporations are usually given handsome tax breaks and "incentives," in the form of what some people call "corporate welfare," which means we are even less likely to see that money again.

And finally, if we remember that the people who privatize are generally wealthy, this reminds us of an old story where the rich get richer and the poor get poorer -- where the hard earned tax money from each of us is funneled into the hands of the wealthy few for their own personal gain. While we each like to think we don't live in a society like that, today this is justified to us through the myth that "free markets" are the same thing as democracy; that if everything is privatized and ruled by the law of the dollar then democracy will be ensured.

Add this to the fact that prisons do not make us safer and are by far the most expensive way of dealing with what we call "crime," we suffer other costs as well. Social costs of broken families and communities -- of both victims and perpetrators; hidden financial costs like paying for the foster care of prisoners' children; what we will only pay again when a prisoner re-emerges more desperate, addicted, uneducated and disenfranchised than they went in; the vengeance our society seeks through prisons and punishment will cost us twice the price of ensuring true equality, opportunity and social health at the roots of our society.

The PRIVATIZATION OF PRISONS is but one case in which a few people exploit our society's larger problems for their own gain, at a cost we all bare and get little in return.


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