[p2p-research] Post-Depression first: Americans get more money from government than they give back | csmonitor.com

Paul D. Fernhout pdfernhout at kurtz-fernhout.com
Thu Nov 26 02:12:40 CET 2009

Samuel Rose wrote:
> On Wed, Nov 25, 2009 at 2:41 PM, Paul D. Fernhout
> <pdfernhout at kurtz-fernhout.com> wrote:
>> It may not be as simple as "prison unions", but clearly employment and
>> profits are a big part of the dynamics of creating laws about crime and
>> punishment in the USA.
> The discussion of prison guard unions is only part of the picture. The
> strongest prison expansion lobby is likely to be corporations that
> build and manage many of these prisons. Private run prisons are some
> of the most lucrative businesses in America. (at least, Corrections
> Corp of America, largest corp managing prisons, is ding really well
> http://thevalueatrisk.blogspot.com/2009/08/private-prisons-reliable-american.html
> )
> Prison guard unions may be lobbying for long terms, but the private
> corps are right there with 'em
> Found this too
> http://thephoenix.com/Boston/News/73092-Freedom-watch-Jailhouse-bloc/

I don't want to read those, but I guess I should force myself to. :-(

 From that first article:
There is one aspect of society however, that has continued to expand despite 
the difficult economic circumstances: the prison population. Additionally, 
and contrary to what many believe, the construction and management of jails 
and prisons are not functions exclusive to the government. In fact, the 
fourth largest correctional system in the nation is owned and operated by 
the Corrections Corporation of America (CXW) - only the federal government 
and two states operate prison systems containing more bed space than CCA. ...
Construction Corp. of America has clearly demonstrated solid revenue growth 
over the past half-decade. The Company's earnings have been growing at a 
more subdued pace since 2005, but capital expenditures have absolutely 
exploded; growing from $73.9M in 2005, to $516M in 2008. CCA isn't pouring 
nearly a third of it's annual revenue into new property/plant investments 
without a reason. I'd expect that in the coming quarters, this amount of 
investment will begin to yield tangible returns for the Company.

 From that second article:
Almost a half-century later, that mindset has extended to both the local and 
federal law-and-order sectors, which have argued for, and experienced, 
virtually unabated growth. Today, law-enforcement groups regularly lobby 
against criminal-punishment reforms, and for the creation of new criminal 
statutes and overly harsh prison sentences. While these efforts are cloaked 
as calls for public safety, they are essentially creating more business for 
   The problem has become so widespread that some private correctional 
corporations — companies that subcontract services, and even privately owned 
jails and prisons, to all levels of government — have even lobbied the 
government to enact and maintain ever broader criminal laws and higher 
sentences. Those private prisons are now rolling in the profit, and taking 
on more prisoners every day as federal and state prisons run out of room to 
house their inmates.
   But these lobbyists' success — and that of various law-enforcement groups 
— has given rise to a veritable "prison-industrial complex" that not only 
uses fear to suppress these groups' true intentions — it leaves taxpayers 
footing the bill.

So, basically, if CCA is building more prisons, we can guess what is coming 
in the USA to make them profitable. What do they know that the average 
person does not? :-(

--Paul Fernhout

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