….With the government paying private prison operators about $23,000 per year per inmate (keep in mind, the minimum wage is $15,000 per year), it’s a lucrative business. CoreCivic’s reported 2017 revenue was close to $1.8 billion, and a back-of-the-envelope calculation shows that with 80,000 beds supported by the government to the tune of $23,000 per inmate per year, it’s collecting about $1.8 billion annually from the government. Business is booming indeed – thanks to the American taxpayers.
To boot, with most private prison contracts, if the prison beds aren’t full, the government has to pay for them anyway….
… Not only are your tax dollars funding these private prison operators, but you might also be investing in them without even knowing it. As of 2016, Wells Fargo, Bank of America, JP Morgan Chase, BNP and U.S. Bancorp, all played a role in bankrolling private prison companies. And I can see why. Including the three main private prison companies – CoreCivic, The GEO Group and MTC – the industry rakes in about $5 billion in revenue a year….
….The entire argument for private prisons rests on cost-savings. Private prison companies claim they can do the work of the government for less money. But do they? The truth is, probably not. There is no evidence that they actually save taxpayers any money. In fact, the U.S. Bureau of Justice Statistics reported in 2016 that the cost-savings promised by private prisons have simply not materialized. Some research even indicates that private prisons often refuse to accept inmates that cost a lot to house (i.e. the violent offenders), making the statistics they report highly misleading….