Thanks to Jennifer and Inmates Matter Too for having me as a guest blogger!
Something most people aren’t aware of is that for-profit private corporations now have contracts to manage over 120 prison facilities in the United States. They are paid by person per bed day. Most of them even have contracts with the government to pay for any bed days that are not used. For instance, the state of Virginia had a contract that guaranteed payment for a 95% occupancy rate.
These are private corporations that have boards of directors and stock holders. The higher the profit margin is, the more attractive the stock is. (Think Apple or Microsoft) A profit margin is generated simply by income minus expenses. Hello? What would that tell you about a company that makes it’s living from the incarceration of inmates? They will provide services in the least expense way possible, in order to increase their profit margin and raise the stock price.
Two of the largest…
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