Wednesday, February 8, 2012

Profit Driven Prison Industrial Complex: The Economics of Incarceration in the USA

Profit Driven Prison Industrial Complex: The Economics of Incarceration in the USA

Privatized prison system in USA under attack by reformers.


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By allowing a profit-driven capitalist-enterprise model to operate over institutions that should rightfully be focused on rehabilitation, America has enthusiastically embraced a prison industrial complex. Under the promise of maintaining correctional facilities at a lower cost due to market competition, state and federal governments contract privately run companies to manage and staff prisons, even allowing the groups to design and construct facilities. The private prison industry is primarily led by two morally deficient entities, the Corrections Corporation of America (CCA) and the GEO Group (formerly Wackenhut Corrections Corporation). These companies amassed a combined revenue of over $2.9 billion in 2010, not without situating themselves in the center of political influence.


The number of people imprisoned under state and federal custody increased 772% percent between 1970 and 2009
, largely due to the incredible influence private corporations wield against the American legal system. Because judicial leniency and sentencing reductions threaten the very business models of these private corporations, millions have been spent lobbying state officials and political candidates in an effort to influence harsher “zero tolerance” legislation and mandatory sentencing for many non-violent offenses. Political action committees assembled by private correctional corporations have lobbied over 3.3 million dollars to the political establishment since 2001. x x x.




Considering today’s private prison population is over 17 times larger than the figure two decades earlier, the malleability of the judicial system under corporate influence is clear. The Corrections Corporation of America is the first and largest private prison company in the US, cofounded in 1983 by Tom Beasley, former Chairman of the Tennessee Republican Party. The CCA entered the market and overtly exploited Beasley’s political connections in an attempt to exert control over the entire prison system of Tennessee. Today, the company operates over sixty-five facilities and owns contracts with the US Marshal Service, Immigration and Customs Enforcement (ICE) and the Bureau of Prisons. The GEO Group operates 118 detention centers throughout the United States, South Africa, UK, Australia and elsewhere. Under its original name, the Wackenhut Corrections Corporationwas synonymous for the sadistic abuse of prisoners in its facilities, resulting in the termination of several contracts in 1999.



The political action committees assembled by private prison enterprises have also wielded incredible influence with respect to administering harsher immigration legislation. The number of illegal immigrants being incarcerated inside the United States is rising exponentially under Immigration and Customs Enforcement (ICE), an agency responsible for annually overseeing the imprisonment of 400,000 foreign nationals at the cost of over $1.9 billion on custody-related operations. The agency has come under heavy criticism for seeking to contract a 1,250-bed immigration detention facility in Essex County, New Jersey to a private company that shares intimate ties to New Jersey's Governor, Chris Christie. Given the private prison industry’s dependence on immigration-detention contracts, the huge contributions of the prison lobby towards drafting Arizona’s recrementitious immigration law SB 1070 are all but unexpected. While the administration of Arizona’s Governor Jan Brewer is lined with former private prison lobbyists, its Department of Corrections budget has been raised by $10 million, while all other Arizona state agencies are subject to budget cuts in 2012’s fiscal year.



Perhaps the most disturbing aspect of this obstinate moral predicament presents itself in the private contracting of prisoners and their role in assembling vast quantities of military and commercial equipment. While the United States plunges itself into each new manufactured conflict under a wide range of fraudulent pretenses, it is interesting to note that all military helmets, ammunition belts, bulletproof vests, ID tags, uniforms, tents, bags and other equipment used by military occupation forces are produced by inmates in federal prisons across the US. Giant multinational conglomerates and weapons manufacturers such as Lockheed Martin and Raytheon Corporation employ federal prison labor to cheaply assemble weapons components, only to sell them to the Pentagon at premium prices. At the lowest, Prisoners earn 17 cents an hour to assemble high-tech electronic components for guided missile systems needed to produce Patriot Advanced Capability 3 missiles and anti-tank projectiles.


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