Private Prisons: Profits of Crime

At Leavenworth, Kansas, within a perimeter of razor wire, armed prison guards in uniform supervise hundreds of medium- and maximum-security federal prisoners. Welcome to one of America's growth industries- private sector, for-profit prisons. Here in the shadow of the federally-run Fort Leavenworth Disciplinary Barracks and the Leavenworth Federal Penitentiary, the Corrections Corporation of America (CCA) runs a short-term detention facility for medium- and maximum-security prisoners. Under contract to the U.S. Marshal's Service and the Immigration and Naturalization Service (INS), the CCA Leavenworth facility is not an anomaly but part of a trend. In the last decade, from juvenile detention centers to county jails and work farms to state prison units to INS holding camps for undocumented aliens, private interests have entered the incarceration business in a big way. Where there are people detained, there are profits to be made.

Imprisonment is an ugly business under any regime, but the prospect of a privatized prison system raises difficult and disturbing questions beyond those associated with a solely state-operated prison system. It has been, after all, a common assumption that the criminalization and punishment of certain behaviors-the deprivation of physical liberty and even of life itself-are not amenable to private sector usurpation. Some of the arguments that inform this assumption are ethical, some legal, and others practical, but all are being challenged by a growing group of special interests.

Prisons for Profit
Surprisingly, private prisons are nothing new in U.S. history. In the mid-1800s, penny-pinching state legislatures awarded contracts to private entrepreneurs to operate and manage Louisiana's first state prison, New York's Auburn and Sing Sing penitentiaries, and others. These institutions became models for entire sections of the nation where privatized prisons were the norm later in the century. These prisons were supposed to turn a profit for the state, or at least pay for themselves. Typically, privatization was limited: The state leased or contracted convict labor to private companies. In some cases, such as Texas, however, the corrections function was turned over wholesale to private interests which prom ised to control delinquents at no cost to the state. As the system spread, labor and businesses complained that using unpaid convict labor constituted "unfair" competition. Of equal concern to reformers-but of less weight to politicians-was the issue of prisoner abuse under the private corrections regime. Anecdotal evidence from across the country painted a grim picture: While state officials remained indifferent or were bought off by private interests, prisoners suffered malnourishment, frequent whippings, overwork and overcrowding. A series of investigations of state prisons confirmed the tales of horror and produced public outrage. l As with anti-trust legislation and the progressive reforms which followed, public pressure impelled government regulation of private sector abuse. By the turn of the century, concerted opposition from labor, business, and reformers forced the state to take direct responsibility for prisons, thus bringing the first era of private prisons to an end.

Three Trends Converge
But as the twentieth century stumbles to an end, the hard lessons of a hundred years ago have been drowned out by the clamor of free market ideologues. Again, privatization is encroaching ever further on what had been state responsibilities, and prison systems are the target of private interests. The shift to privatization coalesced in the mid-1980s when three trends converged: The ideological imperatives of the free market; the huge increase in the number of prisoners; and the concomitant increase in imprisonment costs. In the giddy atmosphere of the Reagan years, the argument for the superiority of free enterprise resonated profoundly. Only the fire departments seemed safe, as everything from municipal garbage services to Third World state enterprises went on sale. Proponents of privatized prisons put forward a simple case: The private sector can do it cheaper and more efficiently. This assortment of entrepreneurs, free market ideologues, cash-strapped public officials, and academics promised design and management innovations without re- ducing costs or sacrificing "quality of service." In any case, they noted correctly, public sector corrections systems are in a state of chronic failure by any measure, and no other politically or economically feasible solution is on the table.

More Prisoners, More Money This contemporary push to privatize corrections takes place against a socioeconomic background of severe and seemingly intractable crisis. Under the impetus of Reaganite social Darwinism, with its "toughness" on criminal offenders, pris on populations soared through the 1980s and into the 1990s, making the U.S. the unquestioned world leader in jailing its own populace. By 1990, 421 Americans out of every 100,000 were behind bars, easily outdistancing our closest competitors, South Africa and the then USSR. By 1992, the U.S. rate had climbed to 455. In human terms, the number of people in jails and prisons on any given day tops 1.2 million, up from fewer than 400,000 at the start of the Reagan era.

While incarceration statistics have skyrocketed, crime rates have increased much more slowly. In fact, from 1975 to 1985, the serious crime rate actually decreased by 1.42 per cent while the number of state and federal prisoners nearly doubled. The number of people sent to prison is actually determined by policy decisions and political expediency. Politicians of all stripes have sought cheap political points by being "tough on crime." They throw oil on the fire of public panic by portraying the urban underclass (read: young, black males) as predator. Ignoring the broad context of economic policies that have effectively abandoned large segments of the population, they have instituted mandatory minimum sentences, tighter or no parole schedules, and tougher "good time" regulations. Adding to the overpopulation these putative measures wrought, the War on Drugs-which aimed its frenzy at the inner city-stuffed the nation's already over crowded prisons with a large crop of mostly African-American and Latino nonviolent offenders. In state after state, budgets have been stretched to the breaking point by the cost of maintaining and expanding this massive correctional archipelago. In California, the nation's largest state prison system, the corrections budget increased seven-fold during the 1980s to $2.1 billion annually at the end of the decade-and the system was still operating at 180 percent of capacity. The huge costs associated with the choice to deal with social problems by mass imprisonment are a fundamental part of the drift toward private prisons. The converging trends (rampant free-marketism, higher prison population, and escalating costs) are part of a larger trend-the sharpening of Reaganite class war and the social meanness that accompanied it. The last time the U.S. faced such an influx of prisoners was after the Civil War when freed blacks, who were previously punished and controlled within the slave system, were sent to formerly all-white prisons. The present situation is not perfectly analogous, but once again, policy-makers faced with burgeoning and unruly minority resistance of their own making seem to have chosen a similar course: "Lock 'em up and throw away the key."

Continue on Covert Action Quarterly