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The two largest private prison companies, Corrections Corporation of America (CCA) and GEO Group, combined had over $2.9 billion in revenue in 2010.
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.
Over the years, these political strategies have allowed private prison companies to promote policies that lead to higher rates of incarceration and thus greater profit margins for their company. In particular, private prison companies have had either influence over or helped to draft model legislation such as ‚three-strikes‛ and ‚truth-in-sentencing‛ laws, both of which have driven up incarceration rates and ultimately created more opportunities for private prison companies to bid on contracts to increase revenues. The recent Supreme Court decision in Citizens United vs. FEC further facilitates this influence by allowing corporations to engage freely in paid political speech such as television and radio ads and programs.
Private prison companies, through their Political Action Committees (PACs) and contributions by their employees, give millions of dollars to politicians at both the state and federal level.58 Since 2000, the three largest private prison companies—CCA, GEO and Cornell Companies have contributed $835,514 to federal candidates, including senators and members of the House of Representatives. Giving to state level politicians during the last five election cycles was much higher: $6,092,331.60 This likely reflects two factors: that states collectively continue to be their largest client, and that at the federal level, elected officials may be less involved in the decisions to award private prison contracts than non-elected bureaucrats. Contributions to state politicians have been increasing over the past five major election cycles. For instance, 2010 marked the highest recorded year of state political giving by these private prison companies since 2000.
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.
The three largest corporations with stakes in immigration detention today are Corrections Corporations of America (CCA), the GEO Group, Inc., and the Management and Training Corporation (MTC). In 2010, CCA and GEO reported annual revenues of 1.69 billion and 1.17 billion respectively, but because neither the corporations nor ICE make the necessary data publicly available, it is so far not possible to determine what percentage of these profits are attributable to ICE contracts.
Originally posted by Hessling
An excellent post. Thanks for doing the legwork.
Add this to your list of reasons this is so messed up:
ATS: Pa. Judge Gets 28 Years in "Kids-for-Cash" Scandal
When you turn the penal system into a for-profit sector this sort of behaviour is bound to occur.
Lives ruined, corruption on the judicial bench, and all the while this continues on.
Originally posted by Kali74
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.
Originally posted by sligtlyskeptical
How do private firms make it cheaper? Better management skills? Why not just hire the guys who work for the private systems to run the state systems. Same should go for energy, utilities, telecom, etc. Lets exchange the profit in these industries and return it to the workers and consumers and reward innovative discoveries in these fields with one time payments.
Originally posted by reficul
it has been documented that judges have been paid money by big business private prisons to give longer sentances to inmates so the prisons profit more!!!
i watched a show on this,and a few judges were caught,and removed.
thats the harm!!!
Originally posted by Kali74
It can be legitimately argued that privatizing prisons is cost effective,