It is inevitable that you will find cases of business acumen that are nonetheless deplorable. My favourite example is of Rupert Murdoch's Fox News. Given a supposed liberal media bias in the States, the ever-enterprising Rupert Murdoch put up the channel with a distinct conservative tilt. You may not always appreciate the product, but hey, it's a damn good illustration of give 'em what they want in operation, Fox News babes and all.
Now, the prison-industrial complex is certainly a growth industry. I like to think of America as one big gated community. Those who have the temerity to try and climb the walls are, of course, carted off to jail. Social mobility is more of a pipe dream than an American dream. Building prisons, monitoring prisoners, feeding prisoners, clothing prisoners...it's all become good business as politicians promising to be tough on crime, harsher penalties, and overcrowded government facilities result in more correctional procedures being outsourced to private industry. Although the relationship between crime and economic downturns is subject to much debate, it is hard to argue that the US slump will slow down the further movement towards private corrections. With apologies to Kevin Costner, if you build correctional facilities, the inmates will come--in droves. Some will lament the social problems; others will be in it for the money. Incarceration nation is where the money is at. Appropriately enough, from Forbes:
currently accounts for approximately 25% of the global prison population, despite possessing less than 5% of the world's population. The United States prison population is now so large that it has important economic, fiscal and social consequences that are resistant to policy reform. U.S.
A series of recent international studies have underlined the stark picture of prison life and numbers in the
, compared with other countries. The danger is that the political and economic rationale behind the massive prison population may have created a self-reinforcing cycle. United States
There are 2.3 million to 2.5 million prisoners in the
: United States
incarcerates 751 per 100,000 members of the population. United States
--This is a major departure from the historic incarceration rate.
There are several reasons for the comparatively high incarceration rate:
1. Public policy. Federal and state courts follow tougher sentencing guidelines than other countries. Furthermore, several policy developments have helped increase incarceration rates. Extending sentence terms has been a bipartisan policy.
2. New penal regime. Following federal declarations of "war on drugs" and "war on crime," anti-crime policy has become a mainstay of the role of
federal and state authority in society. New penal policies were devised and implemented in the 1980s, which combined novel elements such as: U.S.
--much tougher attempts to "manage" the criminally dangerous part of the population through extended incarceration; and
--greater attention to populist demands for harsher punishment.
3. Welfare substitution. This new penal regime coincided with other public policy developments that rolled back the welfare state. Imprisonment, in many cases, became a substitute for cutbacks in other social welfare policies.
Prisons have become a major
industry. Their scale sets in lucrative logistic and organizational dynamics, and has created a network of vested interests. Many new state and federal prisons have been deliberately located in economically deprived rural communities, where they have become the principal employer. Some economists and social scientists describe this as a "prison-industrial complex." It subsidizes jobs for those running prisons and through resources it buys in from the private sector. Moreover, some private employers take advantage of exceptionally low prison pay to outsource basic packing, assembling or services work to prisoners. U.S.
High rates of incarceration have numerous negative legacies, but two stand out:
--Ethnic divisions. Blacks and increasingly Hispanics are imprisoned at an exceptionally disproportionate rate.
--Disenfranchisement. Historically, felon disenfranchisement has been a key feature of the
penal system. Given that the prison population is not a random profile of the citizenry, this has important political effects. Unsurprisingly, many former felons fail properly to reintegrate into society following release. U.S.
The current role of the criminal justice system in the
political economy will face two near-term challenges: U.S.
--Fiscal pressure. Collapsing housing prices have hit state budgets particularly hard, which will make it difficult to expand the prison system at the current rate.
--Political change. The unaddressed problems with the current harsh incarceration policy have begun to attract political attention.
prison policy has many deleterious economic and social effects, and is fiscally unsustainable. Despite the resistance of entrenched interests and political lobby groups, reform--principally a reduced rate of incarceration for non-violent offenders--is inevitable. U.S.