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America's Gulag: The Money (in Politics) Behind Prison Privatization

Posted: 02/15/2012 12:18 pm

The Huffington Post published an excellent piece yesterday by reporter Chris Kirkham describing how the Corrections Corporation of America (CCA) wants to buy up state prisons, all under the guise of helping state governments deal with their budget shortfalls.

Called the Corrections Investment Initiative (sounds so positive, right?), it's a sickening display of exploitive behavior -- perhaps best underscored by the fact that the CCA stipulates in its "investment" overture that, as part of the deal, the states need to keep the prisons packed. Their language for it: "An assurance by the agency partner [the state] that the agency has sufficient inmate population to maintain a minimum 90 percent occupancy rate over the term of the contract."

It reminded me of a recent article in the New Yorker by the game-changing journalist Adam Gopnik:

Mass incarceration on a scale almost unexampled in human history is a fundamental fact of our country today -- perhaps the fundamental fact, as slavery was the fundamental fact of 1850... Over all, there are now more people under "correctional supervision" in America--more than six million -- than were in the Gulag Archipelago under Stalin at its height.

Yet the one major element that is missing from both Gopnik's and Kirkham's coverage of private prisons is the very element that is at the core of the prison industry's power (and so much of our country's dysfunction) -- money's domination of politics.

Private prisons are a booming business. Over the past ten years, the two largest prison companies (CCA and GEO Group) saw their annual revenue double. The best way to drive up revenue, of course is to keep incarceration rates climbing. From CCA's filings with the Securities and Exchange Commission:

"The demand for our facilities and services could be adversely affected by the relaxation of enforcement efforts, leniency in conviction or parole standards and sentencing practices or through the decriminalization of certain activities that are currently proscribed by our criminal laws," the company's most recent annual filing noted. "For instance, any changes with respect to drugs and controlled substances or illegal immigration could affect the number of persons arrested, convicted, and sentenced, thereby potentially reducing demand for correctional facilities to house them."

The private prison companies that comprise this new American Gulag thus have a clear economic incentive to maintain the status quo. So how do they keep the demand for their services rising?

Here are the facts, gleaned from great groups like Public Campaign, the Center for Responsive Politics, and the Sunlight Foundation:

LOBBYING

-Private prison companies spend millions lobbying the government to support policies favorable to them. Since 2001, CCA and others have spent over $22 million lobbying Congress ($17 million was spent by CCA alone during that time period). Last year, CCA was represented by 37 different lobbyists, many of whom once worked on Capitol Hill, including Vic Fazio, a former U.S. congressman from California.

-What are they lobbying for? One recent effort by CCA and GEO Group was to increase funding to Immigration Customs and Enforcement, which enforces immigration policies that send many undocumented immigrants to jail. CCA has lobbied the U.S. House, Senate, and the U.S. Marshals Service, and joined a diverse spread of groups lobbying the Bureau of Prisons last year, including the High Concrete Group, the American Academy of Physician Assistants, and the American Apparel and Footwear Association.

-Private prison companies work with ALEC (the American Legislative Exchange Council), an ideologically conservative organization that unites state lawmakers with corporations, to secure the passage of favorable policies. Through ALEC, they've lobbied for harsher sentencing for nonviolent offenses (often drug-related) and anti-immigrant legislation. Most notoriously, ALEC was involved in passing a controversial anti-immigrant law in Arizona in 2010, one that directly benefited private prison corporations.

CAMPAIGN CONTRIBUTIONS

-For-profit prison corporations strategically donate to political campaigns both nationally and locally, maintaining political action committees (PACs) as well as donating on an individual level. Nationally, the PACs and executives of private prison companies have given at least $3.3 million to political parties, candidates, and other PACs since 2001, reports Public Campaign.

-Furthermore, the private prison industry has given more than $7.3 million to state candidates and political parties since 2001, with local donations spiking at $1.9 million in 2010.

-Campaign contributions really work for these corporations. Taking Arizona, for instance, 30 of the 36 state legislators who co-sponsored the aforementioned anti-immigration law received contributions from for-profit prison lobbyists and corporations. Executives from CCA also donated to Arizona Governor Jan Brewer's most recent campaign.

THE REVOLVING DOOR

Like most lobbying efforts by big corporations, the for-profit prison industry benefits not just by sending cash to lobbyists and politicians. It also profits from having friends and former employees in high places.

John Kasich is one example. He served as a U.S. representative from Ohio for two decades, retiring in 2000 and taking a position in Ohio with Lehman Brothers -- a company with many ties to the private prison industry, including CCA. Kasich won the governorship of Ohio in 2010 and intensified efforts to privatize state prisons, including appointing a former CCA associate as head of the state's Department of Corrections. Kasich was also once a member of ALEC.

Last year, Ohio became the first state to sell off a prison to a corporation -- and that corporation? You guessed it: CCA.

***


Sadly, this list could go on and on. The amount of graft and manipulation that leads to laws favoring America's Gulag is both stunning and sickening.

But it's no different than what you find in other major industries -- especially industries that work in and around the Big Problems we all seem so incapable of fixing -- energy, finance, housing, public health, manufacturing.

Combine a powerful industry with the state budget crisis, add the corrupting influence of money in politics, and this is what you get.

If we are to reform the prison system, and fix the other Big Problems, we must first reform the lobbying and campaign financing systems.

And to do that, we need to build an all-American (left, right, center) movement that links up these pernicious issues to the cause of democracy reform, put our other differences aside, and strike ferociously at the root of the sources of power that enable the American Gulags, of all sorts, to run our country.

United Republic's Suzanne Merkelson contributed writing and research to this article.

 
The Huffington Post published an excellent piece yesterday by reporter Chris Kirkham describing how the Corrections Corporation of America (CCA) wants to buy up state prisons, all under the guise of h...
The Huffington Post published an excellent piece yesterday by reporter Chris Kirkham describing how the Corrections Corporation of America (CCA) wants to buy up state prisons, all under the guise of h...
 
 
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HUFFPOST SUPER USER
Trubulmaker
05:16 PM on 02/21/2012
It is fundamentally immoral for officials of the government to abdicate their own responsibility, and it is wrong to delegate the government's legal monopoly of force to private interests. The latter is virtually the definition of fascism.
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HUFFPOST SUPER USER
brutusmojo
live w/motherearthnot juston her
10:35 PM on 02/19/2012
Criminals are to blame'
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HUFFPOST SUPER USER
conchop
logic ethics quality
10:22 PM on 02/19/2012
This is sickening. I'm all for making money, but this is nuts. What contribution to society do correctional corporations make? Corporations are supposed to contribute to the general welfare of society. I'm having trouble with corporations taking over towns and prisons. American fascism, plain and simple.

In a different life, I worked with spooks. Intel about the gulags and their horror stories was part of what motivated us in the Cold War. Now this? We have more people in prison?

America has been failed by the real "nuts and bolts" of conservatism. All they do is talk about their conservative virtues while demonizing everyone else. This performance with a failed war on drugs, exploding poverty rates, and an ever rising prison population is an abomination to a Free and prosperous society.
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HUFFPOST SUPER USER
AgainstAnimalAbuse
The end justifies the means
09:46 PM on 02/19/2012
This is not funny, it's down right scary. I am big when it comes to punishment for crimes but having corporations run these joints is not a good thing. Let's vote all those in favor out, we need to check how reps. and senators vote on legislation before we send them back for another term.
09:40 PM on 02/19/2012
I like your points alot, but the first person to come up with the term American Gulag was Mark Dow, in his book almost a decade ago, it was an excellent book on the detention system. I wish you would have cited it. Please give credit were it is due.
This user has chosen to opt out of the Badges program
09:38 PM on 02/19/2012
Lets privatize all of the police while we're at it and we can have fire fighting for profit. Are we really going down this road. The real reason the FED, State Government and Local Government can't pay their bills is because they generously gave themselves to many raises when times were good.
09:01 PM on 02/19/2012
But but but...Ron Paul...surely federal decriminalization will end our drug war...
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HUFFPOST SUPER USER
mabinog
My micro-bio is a desolate wasteland
08:56 PM on 02/19/2012
If the bagger right had their way they would do the same to education....
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OutAtFirst
Mountain goat, desert rat and sea dog
06:46 PM on 02/19/2012
Some of those failed socialist welfare states in Scandinavia are closing prisons for lack of inmates. They are clearly doing something wrong.
06:08 PM on 02/19/2012
Hmmm...cash passed from for-profit prison corporations to legislators who are considering selling prisons and promising to keep them 90% full.

It's enough to gag a maggot.

-HDT

"How does it become a man to behave toward this American government today? I answer that he cannot without disgrace be associated with it."
-Henry David Thoreau, "On the Duty of Civil Disobedience," 1849
04:18 PM on 02/19/2012
he US (Land of the Free) has 5% of the world's population but has 25% of the total number prisoners world wide. Which makes the US one of the best places on the planet to run a for profit prison. Every corporate private prison organization will advocate for maximum minimum and mandatory sentencing. And, they will buy the key legislators or governors on the condition that they share those goals - More inmates = more $$$$ - no brainer.
[The] Prison Industrial Complex, an oppressive current now being led from the top down by the highly profitable Prison Privatization Movement.
I couldn't begin to list all opportunities for corruption in the PIC with the little or no regulations they enjoy. Little or no control on prisoner treatment by low wage, poorly trained guards and administrators – little or no control on prisoners diet, medical care or living environment – insufficient number of guards to prevent violence and sexual predation among the inmates. Any expense will subtract from the bottom line – profits.
It would an easy step to turn the prisons into third world sweat shops – another avenue of profit.
For those who don't believe that those endeavors will not be successful, consider the deep pockets that think otherwise and put their money on it, .stakeholders include a slew of corporate sponsors: Nordstrom's, Microsoft, IBM, Revlon, Target, Dell, Hewlett-Packard and even AT&T, a smorgasbord of some of your favorite brands.
Is this country completely bull goose loony??
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CapitalismIsCancer
Celebrating the End of Conservatism
04:05 PM on 02/19/2012
The U.S. now makes the Soviet Union look like a panacea.

Take a bow, Banksters!
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HUFFPOST SUPER USER
Carl Caroli
I just don't understand people
02:46 PM on 02/19/2012
Corporate campaign contributions, PACs and the like will be the demise of our once great country.
alien brain
I'm stuck here and I can't get home.
11:52 AM on 02/19/2012
This is by far the sickest example of the capitalist system that has ever been divised. Is it any surprise that one in ten Americans are in, or have been in prison. This must stop! The war on drugs must stop! The lobbying of government by prison companies must stop! If government is making decisions about what is legal and illegal, it must take on the responsibility of dealing with the results of those decisions and stop sub-contracting it out. This is an outrage.
unique
Animal lover forever
09:01 PM on 02/19/2012
We need to put the hardend criminals in prison. The War on Drugs
has got to stop. There are too many murderers, rapistist, robbers,
kidnappers, and, sex feins, etc. out there that need to be put away.
The war of drugs has been lost long ago. We need to stop spending
money on drug wars.
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The Ben Bernanke
AMI (American Monetary Institute)
11:21 AM on 02/19/2012
Everyone should read this...