Private Prisons Are Big Businesses

A private company, Corrections Corporation of America, sent letters to 48 states offering to buy each state's prisons. This supposedly would save the states money in these depressed times. The states would need to guarantee the prisons will remain 90% full for the next 20 years and give full management control to the firm. This is the same company that has seen its business grow due to the "war on drugs" and immigrant detention. As Prudential Securities noted, "It takes time to bring inmate population levels up to where they cover costs. Low occupancy is a drag on profits... company earnings would be strong if CCA succeeded in ramp(ing) up population levels in its new facilities at an acceptable rate" Prison populations should not be determined so private businesses can earn big profits.

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