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Why the Prison Industrial Complex is so Profitable

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SmallWins
SmallWins
30 Sep 2021

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Around the world, there are over 10,000,000 people held in prison. With the leader in the Prison Industrial Complex being none other than the United States. Yes, the land of the free, home of the brave has not only the highest number of prisoners, but also the most prisoners per capita.

But whatโ€™s the point of having all these people held in captivity that you have to feed, manage, and somewhat provide for? Simple - almost all the parties involved make money.

This is the prison industrial complex.

If you want to be a prison entrepreneur, the business model of private prisons is very simple. Private companies pitched to the government that if you contract the work to us, we can build the prisons you need faster, make them safer, at a lower cost. So today, the job of the prison entrepreneur is to secure government contracts to build and run prisons.

So if you want to make more money, all you have to do is either increase the price of each prisoner per day, lower your operating costs or increase the number of customers in your facilities.

Letโ€™s say youโ€™re running a company that needs simple manual labor. On one hand, you could hire a normal free citizen but then you have to pay them market wages, maybe offer benefits, 401kโ€™s, deal with labor unions and itโ€™s just a pain. Enter - prison labor! Theyโ€™re domestic, you pay them pennies on the dollar, and they canโ€™t complain!

And this is what happens when all these different parties come together: Police, prosecutors, public prisons, private prisons, government contractors, companies that hire prison labor.
But to be fair, some prisons are a lot better than others in how much they cost and how they treat their customers.
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