Homework #1-Econ 515
Discuss the argument that private prisons save states money and prevent fiscal crisis.
Based on the report, the argument that prisons save state money and avert fiscal crises is a mixed one. Whereas some research findings back this claim with documented data, other findings offer contradicting information. A 2007 study on this topical issue by the University of Uttah for instance, reveals that cost effectiveness of private prions is not guaranteed (ACLU, 2011). Savings margins in this regard, may be too small or negligible to prevent a fiscal crisis. Several other studies and legal reviews have backed this claim regarding the ineffectiveness of private prisons to save money. The Legal Review Committee in the Monmouth County for instance ruled against adoption of private prisons due to not only their high costs compared to public prisons, but also the resultant security threat they pose. From this and other studies, it is evident that private prisons offer little to no economic reprieve to states and thus, instituting them results in a negligible effect in adverting financial crises.
What is the result of high guard turnover rates in private prisons?
A high guard turnover rate in private prisons has varied repercussions on the prison system. A high turnover rate means that guards stay for shorter periods in prisons hence the correction of prisoners is bound to be affected. Assault rates in such incidences are bound to be high. As guards move from the private prisons quickly, the correction process is also affected. Higher guard turnover rates is also an indicator of low state management or control which may lead to massive abuses in private run prisons.
What are the alleged economic benefits to communities from having a new prison located in the local area?
Various economic benefits are purported to come with the institution of new prisons in neighborhoods. These benefits include expected capital influxes which have the potential of stimulating a regions economic growth. This economic growth is achieved through the opening of new business ventures which results in high cash flow and consumer spending. Furthermore, by the mere presence in a local area, cash flow from the government to the regions is expected to be high. More jobs to the communities can also be expected. However, these expected economic gains are suspect. Based on data from research work examining this phenomenon, prions produce insignificant benefits to local communities. A 2005 national study for instance, corroborates this view. Therefore, while most of the documented studies fail to differentiate between government and private reasons, resultant economic gains to communities remains low.
Explain the problems with using private prisons to house immigration law violators pending deportation?
Despite the rise of private prisons, numerous challenges abound when it comes to detaining immigrants in private prisons. Private prisons are often places where cheap labor is obtained especially in the making of military paraphernalia. As the ACLU, (2011) report observes, nearly 400,000 immigrants are detained in private prions annually. Undocumented persons are thus exploited pending their deportations. Being private prisons, the immigrant detains take longer times running into years at times, waiting for their court dates and hearings.
Describe and critique the role of the American Legislative Exchange Council (ALEC)?
American Legislative Exchange Council (ALEC) functions to draft and share model state level laws which are distributed in states. The fundamental principles of free market enterprise are thus advanced by American Legislative Exchange Council as well as federalism. Members from corporates fund ALEC and by so doing they can take part in the deliberations and legislation process. Part of the legislation process advanced by ALEC is the promotion of mass incarcerations and the push for stiffer penalties for offenders. Furthermore, ALEC has pushed for increased government spending on correction facilities. Whereas these moves may appear novel in curbing social vices, they have largely been counterproductive and become burdensome to the tax payer. Expected economic gains by increasing mass incarcerations have equally not been achieved. These myriad of facts puts ALEC’s role as an industry player in disrepute.
How does the private prison lobby work?
Over the years, lobbying by several interest groups has always been achieved by spending big in influencing legislation and getting the ‘right’ candidate in power to protect vested interests. The same applies for private lobbying. Through corporations such as GEO and CCA, legislations for mass incarcerations and maximum sentences have been passed. Lobbying is thus achieved by first, funding legislations and by sponsoring candidates to the oval office and to other elected offices.
What are the two largest private prison corporations? Look up their stock price history. Do pundits recommend “buy”? Why or why not?
The largest private prison corporations in the U.S are the Tennessee-based Corrections Corporation of America (CCA) and Florida-based GEO Group (GEO). Both CCA and GEO trade publicly in the New York Stock market. Based on the corporations’ stock price histories, both appear to thrive in the NY stock market. For instance, CCA issued more than 117 million shares in 2015 whereas GEO issued 75 million, both with a market cap of over 3 billion dollars (Brickner and Diaz, 2011). Increased investor confidence in both corporations stems from the fact that America has a high incarceration rate hence a boost investor confidence for both corporations.
How are private prisons a “major contributor” to mass incarceration?
A report by American Civil Rights Union in 2011 reveals that private prisons are pricey, more violent and have low accountability compared to government prisons. Furthermore, they contribute heavily to increased mass incarceration. Case in point is in Louisiana where incarceration is highest globally (Brickner and Diaz, 2011).
Explain the following: Cost estimates from prison privatization advocates are misleading because private facilities often refuse to accept inmates who cost the most to house” (i.e., creaming the lost-cost offenders)
Private prisons are mostly for profit institutions aiming at minimizing the cost of hosting inmates while maximizing on their use corporately. Therefore, relying on cost estimates from privatization advocates is futile since high cost inmates are often turned down. A better approach in obtaining accurate cost estimates for private facilities will be by contracting non interest groups preferably the government, who should use cost estimates from government run prisons.
A study by a U.C. Berkeley student found that minorities make up a greater percentage of inmates in private prisons than their public counterparts, because minorities are cheaper to incarcerate than others. Why would this be the case? Can you think of some theories?
Minorities form the bigger proportion in private prisons since they are cheaper to incarcerate. In order to improve profitability, private prisons often leave older and expensive prisoners to state run prisons. Furthermore, based on U.C. Berkeley study, inmates above 50 years are mostly whites hence they often move to state run prisons. Minorities on the other hand are mostly the young and healthy out to earn a living and they constitute the majority of the incarcerations in private run prisons since they lead to more profitability.
If private prisons pay lower wages than public prisons – and provide less training for staff – what are the predicted outcomes?
This measure will result in unprecedented high levels of prisoner assault cases due to frustration of the staff. Furthermore, prisoners in such private prions will be less corrected due to ignorance by the correction staff. Finally, a high staff turnover rate is expected. Paucity of prison staff is bound to affect the delivery of services.
How would you define the Prison Industrial Complex? Is it growing or shrinking? (look up relevant Obama policies)
Prison Industrial Complex (PIC) is a phrase used to define the intersecting interests between the government and industry whereby imprisonment, surveillance and policing are considered remedies to political, social or economic problems. PIC is shrinking and the US inmate population declines each passing day as Brickner and Diaz, (2011) documents, thanks to efforts by President Obama. The Sentencing Reform and Corrections Act of 2015 for instance has served to reduce the rate of incarceration by up to 600,000 annually.
References
American Civil Liberties Union. (2011). Annual report - American Civil Liberties Union. New York: American Civil Liberties Union.
Brickner, M., & Diaz, S. (2011). Prisons for profit: Incarceration for sale. Hum. Rts., 38, 13.
