People in jail are there to be rehabilitated into society, not to be used as private prison profit centers. The Justice Department is finally paying attention and halting the privatization of America’s prisons.
With the Justice Department officially suspending deals with contractors, the shares of two major prison stocks fell. An analysis shows that the fall off may not come from the implied cash flow risk, but fear of a $639 million industry that has now been rattled. Two prison stocks – Corrections Corporation of America and GEO – briefly plunged more than 40 percent, with trading in both of these stocks briefly halting.
Why Are Private Prisons Even Allowed to Exist?
The private prison industry has positioned itself as a cost effective option for states that may have volatile funds. Nevertheless, a study by the University of Wisconsin reveals that the for-profit prison complex is actually keeping inmates locked up for longer, just so businesses can profit off of them.
In The Public Interest has also revealed that private prison companies are making deals with clauses that guarantee high prison occupancy rates. This guaranteed prison occupancy rate creates quotas, even forcing taxpayers to fund empty prison cells if the cell population decreases. Even though crime has dropped by a third in the past decade, the requirements for several for-profit prisons has forced taxpayers in states like Colorado to pay an additional $2 million.
Protests May Finally Be Paying Off
Deputy Attorney General Sally Yates has been cited in instructing officials to stop renewing contracts with prisons, or “substantially reduce” their numbers and scope. Ultimately, this decision is founded in the thought that this type of industry is not safe and effective at providing correctional services.
The end of the private prison complex has been part of Democratic presidential nominee Hillary Clinton’s justice reform. However, it is also part of Bernie Sanders’ policies.
Featured image screengrab from video.
