Today's Article
'The United States
has 5% of the
world’s population
but 25% of its
prisoners,' tellingly
reveals a recent
government report.
has 5% of the
world’s population
but 25% of its
prisoners,' tellingly
reveals a recent
government report.
The American Spark
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 |
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Prisons Are Becoming Big Business
By Cliff Montgomery - May 9th, 2010
The Congressional Research Service (CRS) last month released a study entitled, Economic Impacts of
Prison Growth. Its essential findings were telling:
A.) America now has a staggering number of its people behind bars--there's been a "a more than 400% jump
in the prison population and a corresponding boom in prison construction" over the last few decades.
"Globally, the United States has 5% of the world’s population but 25% of its prisoners," reveals the CRS study.
This matter not only raises questions in its own right, but the incarceration surge also is breaking the budgets
of numerous U.S. states.
B.) Modern prisons often are run by private corporations, which means that keeping Americans and others
behind bars has been turned into a very big business.
Below, The American Spark provides essential quotes from the CRS report:
"The U.S. corrections system has gone through an unprecedented expansion during the last few decades,
with a more than 400% jump in the prison population and a corresponding boom in prison construction. At the
end of 2008, 2.3 million adults were in state, local, or federal custody, with another 5.1 million on probation or
parole. Of that total, 9% were in federal custody.
"Globally, the United States has 5% of the world’s population but 25% of its prisoners. Prison growth has been
fueled by tough drug enforcement, stringent sentencing laws, and high rates of recidivism—the re-arrest, re-
conviction, or re-incarceration of an ex-offender.
"The historic, sustained rise in incarceration has broad implications, not just for the criminal justice system, but
for the larger economy. About 770,000 people worked in the corrections sector in 2008. The U.S. Labor
Department expects the number of guards, supervisors, and other staff to grow by 9% between 2008 and
2018, while the number of probation and parole officers is to increase by 16%.
"In addition to those working directly in institutions, many more jobs are tied to a multi-billion dollar private
industry that constructs, finances, equips, and provides health care, education, food, rehabilitation and other
services to prisons and jails.
"By comparison, in 2008 there were 880,000 workers in the entire U.S. auto manufacturing sector. Private
prison companies have bounced back from financial troubles in the late 1990s, buoyed in part by growing
federal contracts. Nearly all new U.S. prisons opened from 2000-2005 were private. Private prisons housed 8%
of U.S. inmates in 2008, including more than 16% of federal prisoners.
"The growth of the corrections sector has other impacts.
"A number of rural areas have chosen to tie their economies to prisons, viewing the institutions as recession-
proof development engines. Though many local officials cite benefits, broader research suggests that prisons
may not generate the nature and scale of benefits municipalities anticipate or may even slow growth in some
localities. Record incarceration rates can have longer-term economic impacts by contributing to increased
income inequality and more concentrated poverty.
"The problems are exacerbated by the fact that African Americans and Hispanics are far more likely than
whites to be incarcerated.
"The large prison population also may be affecting distribution of federal dollars. The U.S. Census counts
individuals where they reside. Some regions may record a significant population increase due to new prisons,
meaning they garner more aid under federal population-based formulas.
"The corrections sector is in stress as states seek to reduce prison populations and rein in costs. The efforts
have been underway for several years, but have intensified as the recession that began at the end of 2007 has
wrought havoc on state budgets. At least 26 states cut corrections spending for FY2010. California Gov.
Arnold Schwarzenegger has suggested amending that state’s constitution to ensure that spending on prisons
cannot exceed spending on higher education.
"Arizona is preparing to sell prison facilities to private firms. It remains to be seen whether private companies
will prosper from state efforts, or incur losses if inmate populations level out or decline.
"Congress is involved in the debate via federal contracts with private prisons, proposed legislation to create a
task force on the prison system, increased funding to reduce recidivism, a proposed bill to allow collective
bargaining for public sector correctional workers, proposals to alter rules for the 2010 Census count, and rural
development efforts."
Like what you're reading so far? Then why not order a full year (52 issues) of The American Spark
e-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
By Cliff Montgomery - May 9th, 2010
The Congressional Research Service (CRS) last month released a study entitled, Economic Impacts of
Prison Growth. Its essential findings were telling:
A.) America now has a staggering number of its people behind bars--there's been a "a more than 400% jump
in the prison population and a corresponding boom in prison construction" over the last few decades.
"Globally, the United States has 5% of the world’s population but 25% of its prisoners," reveals the CRS study.
This matter not only raises questions in its own right, but the incarceration surge also is breaking the budgets
of numerous U.S. states.
B.) Modern prisons often are run by private corporations, which means that keeping Americans and others
behind bars has been turned into a very big business.
Below, The American Spark provides essential quotes from the CRS report:
"The U.S. corrections system has gone through an unprecedented expansion during the last few decades,
with a more than 400% jump in the prison population and a corresponding boom in prison construction. At the
end of 2008, 2.3 million adults were in state, local, or federal custody, with another 5.1 million on probation or
parole. Of that total, 9% were in federal custody.
"Globally, the United States has 5% of the world’s population but 25% of its prisoners. Prison growth has been
fueled by tough drug enforcement, stringent sentencing laws, and high rates of recidivism—the re-arrest, re-
conviction, or re-incarceration of an ex-offender.
"The historic, sustained rise in incarceration has broad implications, not just for the criminal justice system, but
for the larger economy. About 770,000 people worked in the corrections sector in 2008. The U.S. Labor
Department expects the number of guards, supervisors, and other staff to grow by 9% between 2008 and
2018, while the number of probation and parole officers is to increase by 16%.
"In addition to those working directly in institutions, many more jobs are tied to a multi-billion dollar private
industry that constructs, finances, equips, and provides health care, education, food, rehabilitation and other
services to prisons and jails.
"By comparison, in 2008 there were 880,000 workers in the entire U.S. auto manufacturing sector. Private
prison companies have bounced back from financial troubles in the late 1990s, buoyed in part by growing
federal contracts. Nearly all new U.S. prisons opened from 2000-2005 were private. Private prisons housed 8%
of U.S. inmates in 2008, including more than 16% of federal prisoners.
"The growth of the corrections sector has other impacts.
"A number of rural areas have chosen to tie their economies to prisons, viewing the institutions as recession-
proof development engines. Though many local officials cite benefits, broader research suggests that prisons
may not generate the nature and scale of benefits municipalities anticipate or may even slow growth in some
localities. Record incarceration rates can have longer-term economic impacts by contributing to increased
income inequality and more concentrated poverty.
"The problems are exacerbated by the fact that African Americans and Hispanics are far more likely than
whites to be incarcerated.
"The large prison population also may be affecting distribution of federal dollars. The U.S. Census counts
individuals where they reside. Some regions may record a significant population increase due to new prisons,
meaning they garner more aid under federal population-based formulas.
"The corrections sector is in stress as states seek to reduce prison populations and rein in costs. The efforts
have been underway for several years, but have intensified as the recession that began at the end of 2007 has
wrought havoc on state budgets. At least 26 states cut corrections spending for FY2010. California Gov.
Arnold Schwarzenegger has suggested amending that state’s constitution to ensure that spending on prisons
cannot exceed spending on higher education.
"Arizona is preparing to sell prison facilities to private firms. It remains to be seen whether private companies
will prosper from state efforts, or incur losses if inmate populations level out or decline.
"Congress is involved in the debate via federal contracts with private prisons, proposed legislation to create a
task force on the prison system, increased funding to reduce recidivism, a proposed bill to allow collective
bargaining for public sector correctional workers, proposals to alter rules for the 2010 Census count, and rural
development efforts."
Like what you're reading so far? Then why not order a full year (52 issues) of The American Spark
e-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
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