Sunday, June 16, 2013

The US Prison System and Its Ties To Economy - Part One

This is part of a six part series on the US Prison System and how it largely impacts US economy and the lives of all private citizens. Prepare to have your eyes opened. 

Part One: How Things Came To Be - A Little Background

The prison system in the United State became widely used after the Revolutionary War, however it wasn't a system based on parole, probation and sentencing until after the Civil War. The system that we have today was born from expansion in the 1970s and has grown by by more than five times the size it was in 1973. In any given year, approximately 7 million persons are are under the supervision of correctional facilities, either on probation or held in facilities. In 2012, there was a total population in the United States of 313.9 million people.


In 1920, the percentage of Americans incarcerated was only .01 percent. By 2008 that number was fast approaching a full 1% of the population. We have, since 2008, nearly doubled to 2%. while only accounting for 5% of the world population. In 2008, the United States accounted for 2.4 million of 9.8 million prisoners held in the entire world. Billboards could be seen at that time that read, “Welcome to America, home to 5% of the world's population and 25% of the world's prisoners." One might begin to question “Home of the Free” if these numbers were honestly taken into account?

What was the drastic change in the 1970s that caused number to begin to skyrocket? In 1971, Richard Nixon declared the war on drugs. Coincidentally – or not – the United States also began privatizing juvenile correctional facilities at about this same time. This was an experiment that proved profitable. Within a few short years, prisons were overflowing. Following that, came the Sentencing Reform Act of 1984. For the last 25 years, America has had private prisons, run as businesses, to handle “overflow” from the already established prison system.


According to Bureau of Justice Statistics, there are now 1.6 million total state and federal prisons in the United States. 128,195 prisoners are now housed in private, for-profit prison facilities. This number has grown by 37% between 2002 and 2009. There are 66 facilities owned by Corrections Corporations of America. This is the largest for-profit company in the United States. There are 91,000 beds in CCA facilities, currently spread across 20 US states. The total revenue reported by CCA in 2011 was $1.7 billion dollars. Lobby expenditures by CCA, as reported by The Center for Responsive Politics, was $17.4 million dollars over the last ten years. Even further damning is the statistic for the amount of money contributed to political campaigns by CCA from 2003 to 2012: $1.9 million. The CEO, Damon T. Hininger, was paid an executive salary in 2011 of $3.7 million dollars.


The GEO Group is the second largest for-profit private detention company in the US. Their total revenue, according to their own annual report in 2011 was $1.6 billion dollars. They own 65 facilities with over 65,000 beds currently. The Center for Responsive Politics reports that The Geo Group has spend over $2.5 million dollars in lobbying in the last eight years. The National Institute on Money in State Politics reports that from 2003 to 2012, The Geo Group spent $2.9 million dollars in political contributions. Their CEO, George C. Zoley earned a paycheck of $5.7 million dollars in 2011. The company was ordered to pay a fine of $1.1 million that was levied in November of 2011 by the New Mexico Department of Corrections for inadequate staffing. They are currently still appealing another judgment for damages awarded in a wrongful death lawsuit from last June. An inmate was beaten to death by his cellmate at an Oklahoma prison. The judgment was awarded for $6.5 million dollars but the company has filed an appeal and it is still pending.

Up next, Part 2 - What This Means To America

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