Profiting from Prisoners

Profiting from Prisoners is one heading
in an article written for Colorlines Magazine by Angela Davis.
Profiting from Prisoners is excerpted from a 4 page article titled,
Masked Racism: Reflections on the Prison Industrial Complex

As prisons proliferate in U.S. society, private capital has become enmeshed in the punishment industry. And precisely because of their profit potential, prisons are becoming increasingly important to the U.S. economy. If the notion of punishment as a source of potentially stupendous profits is disturbing by itself, then the strategic dependence on racist structures and ideologies to render mass punishment palatable and profitable is even more troubling.

Prison privatization is the most obvious instance of capital’s current movement toward the prison industry. While government-run prisons are often in gross violation of international human rights standards, private prisons are even less accountable. In March of this year, the Corrections Corporation of America (CCA), the largest U.S. private prison company, claimed 54,944 beds in 68 facilities under contract or development in the U.S., Puerto Rico, the United Kingdom, and Australia. Following the global trend of subjecting more women to public punishment, CCA recently opened a women’s prison outside Melbourne. The company recently identified California as its “new frontier.”

Wackenhut Corrections Corporation (WCC), the second largest U.S. prison company, claimed contracts and awards to manage 46 facilities in North America, U.K., and Australia. It boasts a total of 30,424 beds as well as contracts for prisoner health care services, transportation, and security.

Currently, the stocks of both CCA and WCC are doing extremely well. Between 1996 and 1997, CCA’s revenues increased by 58 percent, from $293 million to $462 million. Its net profit grew from $30.9 million to $53.9 million. WCC raised its revenues from $138 million in 1996 to $210 million in 1997. Unlike public correctional facilities, the vast profits of these private facilities rely on the employment of non-union labor.