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Ohio officials lauded the September transaction, saying that private management of the facility would save a projected $3 million annually.
Linda Janes, chief of staff for the Ohio Department of Rehabilitation and Correction, said the purchase came at time when the state was facing a $8 billion shortfall. The $72.7 million prison purchase was aimed at helping to fill a $188 million deficit within the corrections agency.
Ohio's deal requires the state to maintain a 90% occupancy rate, but Janes said that provision remains in effect for 18 months — not 20 years — before it can be renegotiated. As part of the deal, Ohio pays the company a monthly fee, totaling $3.8 million per year.
CXW - Corrections Corp Of America (NYSE)
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Apr 23 4:03pm ET - Disclaimer
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As a child Ayana Cole dreamed of becoming a world class fashion designer. Today she is among hundreds of inmates crowded in an Oregon prison factory cranking out designer jeans. For her labor she is paid 45 cents an hour. At a chic Beverly Hills boutique some of the beaded creations carry a $350 price tag. In fact the jeans labeled "Prison Blues" -- proved so popular last year that prison factories couldn't keep up with demand.
For the tycoons who have invested in the prison industry, it has been like finding a pot of gold. They don't have to worry about strikes or paying unemployment, health or worker's comp insurance, vacation or comp time. All of their workers are full time, and never arrive late or are absent because of family problems; moreover, if prisoners refuse to work, they are moved to disciplinary housing and lose canteen privileges. Most importantly, they lose "good time" credit that reduces their sentence.
Prisoners, whose ranks increasingly consist of those for whom the legitimate economy has found no use, now make up a virtual brigade within the reserve army of the unemployed whose ranks have ballooned along with the U.S. incarceration rate. The Corrections Corporation of America and G4S (formerly Wackenhut), two prison privatizers, sell inmate labor at subminimum wages to Fortune 500 corporations like Chevron, Bank of America, AT&T, and IBM.
Another one of ALEC's more egregious pieces of legislation, the Prison Industries Act (PIE), privatizes prison labor and directs any money earned by the prisoners towards expanding the prison industry, creating more prisoner work programs and paying corporations for setting them up. Prior to ALEC's intervention, that money was used to offset taxpayer expenses. Now it fattens corporate wallets. Some 30 states operate PIE programs based upon legislation derived from ALEC. Florida has 41 prison industries, California has 60, and there are roughly 100 throughout the other states that employ prison labor.
What some Americans may not have realized, however, is that these resulting prison labor industries, which rely on cheap, almost free labor, are doing as much to put the average American out of work as the outsourcing of jobs to China and India. "It's bad enough that our companies have to compete with exploited and forced labor in China. They shouldn't have to compete against prison labor here at home," noted Scott Paul , Executive Director of the Alliance for American Manufacturing.
As a child Ayana Cole dreamed of becoming a world class fashion designer. Today she is among hundreds of inmates crowded in an Oregon prison factory cranking out designer jeans. For her labor she is paid 45 cents an hour. At a chic Beverly Hills boutique some of the beaded creations carry a $350 price tag. In fact the jeans labeled "Prison Blues" -- proved so popular last year that prison factories couldn't keep up with demand.
Privatizing prisons makes imprisoned humans a direct profitable market commodity.
Originally posted by Skewed
In and of itself, nothing is wrong with it.
The problems arise when they start creating problems to justify their existence and finding excuses to lock people up, just to make a buck. The judges in New Jersey comes to mind right off the bat.
Thousands of convictions quashed after judge is jailed for getting $1m kickbacks from private prisons he sent youngsters to Read more: www.dailymail.co.uk...
As a child Ayana Cole dreamed of becoming a world class fashion designer. Today she is among hundreds of inmates crowded in an Oregon prison factory cranking out designer jeans.
As Dr. Price said at the press conference, “private prisons don’t save dollars and they don’t make sense.” Only reforms that rely less on incarceration make economic, community, safety and civil rights sense. In Florida and nationally, we must continue our efforts by enacting real reforms in sentencing and creating effective diversion and re-entry programs. De-incarceration, not privatization, will save money, keep Florida safe by preventing future crime and protect the rights of all Floridians.
Research across numerous states has shown that the promised savings from private prisons can be illusory at best. Cost comparisons often fail to account for extra administrative expenses borne by the state, or differences in health care costs for sickly inmates who normally remain in state supervision.
Originally posted by emberscott
It will not relieve the taxpayer. What is not covered in a contract between government and a prison corporation, will be covered in prison corporation subsidies.
Privatizing prisons makes imprisoned humans a direct profitable market commodity. Which is nothing less then human slavery with legalized market trading. Which leads to commodity futures speculation. Which leads to higher incarceration to meet the growing market needs.
I feel I need to say this is a hit and run post. I have no desire to discuss my perspective.