John W. Whitehead, Constitutional Attorney

From today’s New York Times, “A Company That Runs Prisons Will Have Its Name on a Stadium”:

Florida Atlantic University, in Boca Raton, firmed a deal to rename its football buildingGEO Group Stadium. Perhaps that pushed stadium naming to its zenith, if only because the GEO Group is a private prison corporation.

For this partnership, there is no obvious precedent.

The university’s president described the deal as “wonderful” and the company as “well run” and by a notable alumnus. But it also left some unsettled, including those who study the business of sports and track the privatization of the prison industry. To those critics, this was a jarring case of the lengths colleges and teams will go to produce revenue, of the way that everything seems to be for sale now in sports — and to anyone with enough cash…

Critics say the cost may be too high. One is Bob Libal, the executive director of Grassroots Leadership, a social justice group that opposes private prison systems.

“It’s startling to see a stadium will be named after them,” Libal said. “It’s like calling something Blackwater Stadium. This is a company whose record is marred by human rights abuses, by lawsuits, by unnecessary deaths of people in their custody and a whole series of incidents that really draw into question their ability to successfully manage a prison facility.”

GEO Group reported revenues in excess of $1.6 billion in 2011, income generated mostly from state and federal prisons and detention centers for illegal immigrants. The company owns or runs more than 100 properties that operate more than 73,000 beds in sites across the world. It holds nearly $3 billion in assets.

The company has been opposed by civil liberty and human rights groups and immigrant rights organizations. It has been cited by state and federal regulators and lost a series of high-profile lawsuits.

In an age when freedom is fast becoming the exception rather than the rule, imprisoning Americans in private prisons run by mega-corporations has turned into a cash cow for big business. At one time, the American penal system operated under the idea that dangerous criminals needed to be put under lock and key in order to protect society. Today, as states attempt to save money by outsourcing prisons to private corporations, the flawed yet retributive American “system of justice” is being replaced by an even more flawed and insidious form of mass punishment based upon profit and expediency.

As author Adam Gopnik reports for the New Yorker:

[A] growing number of American prisons are now contracted out as for-profit businesses to for-profit companies. The companies are paid by the state, and their profit depends on spending as little as possible on the prisoners and the prisons. It’s hard to imagine any greater disconnect between public good and private profit: the interest of private prisons lies not in the obvious social good of having the minimum necessary number of inmates but in having as many as possible, housed as cheaply as possible.

Consider this: despite the fact that violent crime in America has been on the decline, the nation’s incarceration rate has tripled since 1980. Approximately 13 million people are introduced to American jails in any given year. Incredibly, more than six million people are under “correctional supervision” in America, meaning that one in fifty Americans are working their way through the prison system, either as inmates, or while on parole or probation. According to the Federal Bureau of Prisons, the majority of those being held in federal prisons are convicted of drug offenses—namely, marijuana. Presently, one out of every 100 Americans is serving time behind bars.

Little wonder, then, that public prisons are overcrowded. Yet while providing security, housing, food, medical care, etc., for six million Americans is a hardship for cash-strapped states, to profit-hungry corporations such as Corrections Corp of America (CCA) and GEO Group, the leaders in the partnership corrections industry, it’s a $70 billion gold mine. Thus, with an eye toward increasing its bottom line, CCA has floated a proposal to prison officials in 48 states offering to buy and manage public prisons at a substantial cost savings to the states. In exchange, and here’s the kicker, the prisons would have to contain at least 1,000 beds and states would have agree to maintain a 90% occupancy rate in the privately run prisons for at least 20 years.

The problem with this scenario, as Roger Werholtz, former Kansas secretary of corrections, recognizes is that while states may be tempted by the quick infusion of cash, they “would be obligated to maintain these (occupancy) rates and subtle pressure would be applied to make sentencing laws more severe with a clear intent to drive up the population.” Unfortunately, that’s exactly what has happened. Among the laws aimed at increasing the prison population and growing the profit margins of special interest corporations like CCA are three-strike laws (mandating sentences of 25 years to life for multiple felony convictions) and “truth-in-sentencing” legislation (mandating that those sentenced to prison serve most or all of their time).

And yes, in case you were wondering, part of the investment pitch for CCA and its cohort GEO Group include the profits to be made in building “kindler, gentler” minimum-security facilities designed for detaining illegal immigrants, especially low-risk detainees like women and children. All of this, of course, comes at taxpayer expense.

“And this is where it gets creepy,” observes reporter Joe Weisenthal for Business Insider, “because as an investor you’re pulling for scenarios where more people are put in jail.” In making its pitch to potential investors, CCA points out that private prisons comprise a unique, recession-resistant investment opportunity, with more than 90% of the market up for grabs, little competition, high recidivism among prisoners, and the potential for “accelerated growth in inmate populations following the recession.” In other words, caging humans for profit is a sure bet, because the U.S. population is growing dramatically and the prison population will grow proportionally as well, and more prisoners equal more profits.

In this way, minor criminals, from drug users to petty thieves, are being handed over to corporations for lengthy prison sentences which do nothing to protect society or prevent recidivism. This is the culmination of an inverted justice system which has come to characterize the United States, a justice system based upon increasing the power and wealth of the corporate-state. — John W. Whitehead