PFAW’s 2012 report, “Predatory Privatization: Exploiting Financial Hardship, Enriching the One Percent, Undermining Democracy ,” included a section titled, “The Pernicious Private Prison Industry.” We reported that across the country, private prisons were often violent, poorly run facilities that put prisoners, employees and communities at risk even while failing to deliver on promised savings to taxpayers. But state legislators, encouraged by ALEC and by private prison interests’ lobbying and campaign expenditures, continued to turn prisons over to private corporations, often with contract provisions that acted as incentives for mass incarceration.
A new story in Politico Magazine, “The Private Prison Racket ” comes to the same conclusions. “Companies that manage prisons on our behalf have abysmal records,” says author Matt Stroud. “So why do we keep giving them our business?”
The Politico story slams “bed mandates” – guarantees given by states to private companies to keep prisons full. Contracts like that build in incentives for governments to lock people up – and punish states financially when they try to reduce prison populations.
Politicians are taking notice. Last month, In the Public Interest reported  that reality has turned the tide against private prisons: “Coast-to-coast, governments are realizing that outsourcing corrections to for-profit corporations is a bad deal for taxpayers, and for public safety.” The dispatch cited problems with private prisons in states as diverse as Arizona, Vermont, Texas, Florida, and Idaho, where Gov. Butch Otter, a “small government” conservative, announced last month that the state would take control of the Idaho Correctional Center back from private prison giant Corrections Corporation of America due to rampant violence, understaffing, gang activity, and contract fraud.
But the huge private prison industry is not going away anytime soon. As In the Public Interest notes:
All of this momentum does not suggest the imminent death of the for-profit prison industry. Some states, including California and West Virginia, are currently gearing up to send millions more to these companies. But the past year has been a watershed moment, and we are heading in the right direction. In light of these developments, these states would be wise to look to sentencing reform to reduce populations, rather than signing reckless outsourcing contracts.
The arguments against private prisons are myriad and compelling. Promised savings end up as increased costs. Lockup quotas force taxpayers to guarantee profits for prison companies through lock up quotas hidden in contracts. They incentivize mass incarceration while discouraging sentencing reform in an era when crime rates are plummeting.
But more than anything else, the reality of the disastrous private prison experiment has turned the public against the industry.