In our society, ownership of certain institutions and enterprises is shared between public and private entities. Individuals own private firms, whereas the government manages public ones. Different cultures have owned and run prisons as a part of their law enforcement systems for most of recorded history. Some have tried to find solutions for the numerous problems within today's criminal justice system, like the introduction of the for-profit prison industry. This blog provides a detailed discussion of for-profit prisons.
What is a For-Profit Prison?
A for-profit or private prison is a correctional facility the government contracts to run under private ownership and management. Under this scheme, the government pays a monthly charge for every inmate housed in the private correctional facility. The main distinction between public and private prisons is ownership, with public prisons under the control of municipal, state, or federal governments.
The Notion Underpinning For-Profit Prisons
If you ask capitalists, running any industry privately is more cost-effective than other routes. However, many people across the political spectrum think the government should be in charge of basic services like correctional facilities.
In 2020, approximately 2.3 million people were incarcerated in the United States, which was too much for government facilities to handle. To deal with this overflow, they turned to private prisons, otherwise known as for-profit prison systems, which currently hold roughly 198,000 inmates.
Whether these facilities are necessary remains a subject of debate. The Obama administration tried to phase out private prisons, while Trump's presidency was a golden era for the private prison industry. Records from Trump's first year in office can provide insight into the profits generated by private prisons. On January 27th, President Joe Biden pledged to halt the current contracts for these facilities and gradually cut off their financial incentives.
Indeed, for-profit prisons have crossed dangerous lines by prioritizing profits over safety and rehabilitation. According to the Department of Justice's Inspector General, for-profit prisons have more safety and security incidents per inmate compared to those in government facilities. The Department of Justice confirmed this, revealing a staggering 28% higher likelihood of both inmate-on-inmate and inmate-on-staff violence in for-profit prisons.
The History of Profit-Based Prisons
In the 1980s, there was an increase in incarceration rates due to the rise of for-profit prisons through the war on drugs and other tough-on-crime measures. Thomas Beasley, T. Don Hutto, and Doctor R. Crants founded Correction Corporation of America, now known as CoreCivic, in 1983, which became the first modern private prison company.
CoreCivic was set up to be profitable, like private jails. The government pays them a fixed amount per inmate so that they can provide basic things such as food, clothing, and medical care. This arrangement suited both sides since it conveniently shifted the burden from the government to these corporations, which is why it was attractive. The history dates back to 1980, when the "war on drugs," started by Ronald Reagan, went into full swing. At that time, there was no such thing as a private prison.
The state government allowed for-profit correctional facilities to operate as usual to avoid accountability. Such facilities often use shortcuts to increase their profits. Some ask if these institutions employ experienced staff since private prison officials undergo less training than public jails. This lack of experience and training negatively affects the lives of the inmates.
Back in 2016, the Obama administration took a stand against overcrowded private prisons by directing the Justice Department not to transfer inmates there. This decision was backed by a report by the DOJ, which showed an alarming trend. For-profit prisons had more cases of violence and contraband compared to public prisons. Unfortunately, the Attorney General suppressed this vital document in 2017. Additionally, Trump's administration made no changes to these regulations.
President Joe Biden's pledge to phase out private prisons is a ray of hope. On January 27th, he stopped renewals of contracts for such facilities through an executive order. While this does not affect current contracts, it is still a win for those who support criminal justice reform.
The Effects Of For-Profit Prisons On Sentence Terms And Inmate Intake
According to labor economic research published in the Washington State University journal, using for-profit prisons prolongs sentences and increases the number of inmates per year. This means correctional facilities add an average of one hundred seventy-eight inmates per million people annually.
A privately run correctional facility inmate is charged around sixty dollars daily. These organizations can earn about $10.6 million annually if each new offender goes into one of their facilities alone. The research also found significant time-served increases, especially among individuals with non-violent crimes.
Certain offenses give judges and prosecutors more room when evaluating a suitable punishment for offenders during the sentencing process. Burglary, fraud, or non-violent drug cases are some examples. Counties with empty beds in privately run prisons are more likely to opt for the maximum jail term. However, judges' discretion in sentencing is limited when it comes to felonies involving violence.
Private prisons contribute to increased rates of imprisonment and longer sentences through corruption. Legislators and jury members could be influenced to pass more stringent laws or impose severe punishments just because they want large payments from private correctional institutions. These facilities see an increase in annual revenue as occupancy increases.
Unfortunately, growth in private prisons affects both the effectiveness and impartiality of court decisions. There is a clear relationship between for-profit prisons and high incarceration rates, which are usually not due to an increase in crime.
How For-Profit Prisons Promote Corruption
Like any other business, private prisons exist to make profits rather than rehabilitate individuals. In theory, these facilities can detain inmates at a cheaper cost if the government continues to pay them. This means more inmates in private prisons translates into more profits.
The number of Americans occupying private prisons stands at 8%, but this can change in the future due to proper financial incentives. However, it undermines what "correctional" institutions are about and creates a flawed correctional system. In addition to punishing offenders, prisons focus on rehabilitating inmates to enable them to rejoin society after serving their sentences.
As the detainees' population increases, private prisons generate more revenue and don't require rehabilitation. It was clear that any reduction in recidivism would mean a threat to their primary source of income. An 83% rearrest rate within nine years among those released from prison in 2005 was indicated by a U.S. Bureau of Justice report indicating high levels of recidivism in the US and the system's flaws.
Recidivism rates are lower in states without private prisons. The absence of for-profit correctional facilities contributes significantly, although many other factors can influence recidivism rates in different states. In conclusion, privatizing correctional institutions is morally wrong. These facilities benefit from higher recidivism rates and more convictions. Also, their objectives do not intend to improve neighborhood safety, lower the crime rate, or offer rehabilitation.
How Private Prisons Make Huge Profits From Holding Immigrants
The rise of for-profit prisons in the 1980s was directly linked to the increase in population in public prisons. These institutions are now the government's major detention centers for undocumented immigrants. While private jails have housed immigrants for years, the Trump administration has significantly increased their use.
The United States manages an extensive detention system through Immigration and Customs Enforcement (ICE). During the first three years of Trump's administration, approximately 24 additional immigration detention facilities were opened, adding 17,000 extra beds. Since 2017, corporations that operate private correctional institutions and detention facilities have seen record-breaking profits due to political endorsements from privatized prisons.
The government accommodates nearly 50,000 immigrants at a cost of almost $3 billion annually. Most of these undocumented individuals have no criminal histories. However, they are detained in facilities with an alarming track record of mistreatment, including regular solitary confinement, lack of proper medical care, incidents of sexual assault, and hunger strikes.
Due to immigrant detention, for-profit prisons are striving to survive despite decreasing rates of incarceration and recidivism. It will take time to see if President Biden's executive order leads to the end of the profitable future of for-profit prisons.
The Issue With For-Profit Prisons
At first glance, a for-profit prison may seem like a good idea. However, the economics of incarceration lie at the root of the issue. One of the correctional system's main objectives is to facilitate inmates' rehabilitation. However, a study from the U.S. Department of Justice reviewed data from 24 states between 2008 and 2018 and found that recidivism rates were at 82%. This could make it clear how well that goal was being met.
Furthermore, for-profit prisons would face closure if they achieved a 100% success rate. This raises the ethical question of whether the primary goal of a correctional facility should be inmate rehabilitation or profit-making. Prioritizing financial gains over the welfare of inmates can make having a large jail population seem attractive. The fact that these are for-profit prisons presents another issue. This implies that the company aims to make financial savings by cutting employee compensation, benefits, or services.
For example, a prison can reduce the daily cost of housing each inmate from $100 to $70 by eliminating cleaning services. This means that they can receive an extra $30 per day. In this case, the amount can quickly accumulate in a facility with 2,000 inmates. While reducing cleaning costs boosts revenue for the institution, it also subjects the inmates to filthy and harsh living conditions. Ultimately, cutting expenses affects the inmates and diminishes the quality of their living conditions.
Finally, the legislation needs to be written to allow for a continuous influx of new inmates. This ties back to the lobbying aspect once more. Harsher laws affect more individuals. A higher number of inmates in the correctional system leads to increased prison revenue. Some individuals argue that the introduction of more regulations could result in the annual imprisonment of thousands, which is the main reason behind the support of the war on drugs.
What Private Prisons Can Expect In The Future
Twenty-two of America's fifty states do not incarcerate inmates in for-profit prisons. Recently, California passed laws to end corporate partnerships and prohibit the operation of private prisons. This move shows that more states will likely follow suit in the coming months by revising their laws to eliminate for-profit immigration detention facilities.
California Governor Gavin Newsom passed a bill that effectively eliminates the use of for-profit prisons beginning January 1, 2020. The state of California opposes making fortunes from detaining its citizens. The authorities prioritize inmates' safety and well-being by prohibiting private prisons and detention centers. This also reflects how the state authorities deal with the inmates within the policy framework.
Although many government agencies are phasing out their privately owned prisons, some legal loopholes in the current legislation protect them. In this case, these institutions will continue offering services like educational and health facilities even after they have been shut down. Therefore, focusing on legislation that abolishes private prisons does not mean immediate closure.
Some states have laws against prisons housing people under custody. The only effective way to handle for-profit prisons and private detention centers is to pass a law without reservation. However, this perception may be too early since it assumes a promising future for American private prisons.
At the same time, some establishments might still be open. Financial institutions are increasingly distancing themselves from companies linked to the prison industry following public criticism about human rights abuses and other inmate welfare issues.
Deciding whether privately run correctional systems should be abolished or reformed will require careful consideration and time within the criminal justice system. 92% of inmates are held in federal and state facilities with poor living conditions, with only 8% housed in private prisons. Both public and private correctional facilities still have gaps in streamlining and improving their operations.
Mass incarceration is still a major problem in state, federal, and private prisons. For long-term solutions, the US government needs to address this issue. The current public facilities are barely able to accommodate the required number of beds due to the large number of people incarcerated.
Removing financial incentives from legal institutions and rolling back strict criminal laws could be necessary to address the nation's imprisonment issue and expedite the closure of for-profit prisons. By combining these strategies, progress can be made toward a more effective and humane criminal justice system.
Why Would It Be Necessary to Trade Private Prisons Openly?
When a company grows, it can choose to go public. Essentially, this move helps the corporation achieve specific goals that were impossible as a privately held company.
Most businesses find that exposure leads to growth. The more people know about a company, the more sales it can generate. However, in a private prison, exposure is not a priority. Instead, they need capital increases for two other reasons.
A private prison can earn $60,000 per day by "marking up" the cost of caring for each inmate at $60 per day in a correctional facility housing a thousand inmates. If the penitentiary hits full capacity, it can seal a new government contract for building another correctional facility in a neighboring state that would fetch an extra $60,000. By going public, their sole ambition is to raise the funds needed to construct a second prison.
Despite this, privatizing a prison has more reasons. These facilities depend on the admission of new inmates to replace those who have completed their sentences and operate continuously. This entails the re-contracting and enforcement of laws, sometimes even more severely. The private companies could campaign for stricter law enforcement or seek backing from legislators using various means.
Will The Public Have Access To Information On For Profit Prisons?
Family members, watchdog organizations, and the public often worry about how easy it is to obtain information regarding conduct in for-profit prisons. Private prisons are not the only ones that face this issue. Recent controversies involving the IRS file and FBI crime lab manipulation demonstrate that information abuse can occur within government agencies.
Suppose a for-profit prison operates under a government contract. In that case, it is required to release any information that is not confidential, even though proprietary material is not generally of public interest. Additionally, contract clauses can set forth requirements for audits or inspections by third-party firms or government departments to ensure that essential data is publicly accessible. The contract can also include policy guidelines for visiting inmates.
What is the Difference Between a For-Profit Prison and a Public Prison?
The significant distinction between for-profit and public prisons is their management and ownership. The government owns and manages public prisons, whereas individuals own for-profit prisons. A public prison is funded and managed by the government to offer services to citizens. In contrast, a for-profit prison is operated by an organization for profit, though they receive payment from the government.
Find A Seasoned Criminal Defense Lawyer Near Me
For-profit prisons operate as businesses. However, they prioritize revenue over inmate well-being and rehabilitation. The existence of these facilities, in conjunction with existing immigration rules, creates structural incentives that increase the number of immigrants and detainees. As such, private correctional institutions become more lucrative, and there is an increased risk to the health of undocumented immigrants and inmates.
To protect American democracy, it is crucial to have an informed population. If you need more information about these institutions or legal assistance for a loved one in a private prison in Los Angeles, CA, contact us, The Los Angeles Criminal Defense Attorney. Call us at 310-564-2605 for a free consultation.
