HUMAN rights organizations, as well as political and social ones, are
condemning what they are calling a new form of inhumane exploitation in the
United States, where they say a prison population of up to 2 million –
mostly Black and Hispanic – are working for various industries for a pittance.
For the tycoons who have invested in the prison industry, it has been like finding
a pot of gold. They don’t have to worry about strikes or paying unemployment
insurance, vacations or comp time. All of their workers are full-time, and never
arrive late or are absent because of family problems; moreover, if they don’t
like the pay of 25 cents an hour and refuse to work, they are locked up in isolation
There are approximately 2 million inmates in state, federal and private prisons
throughout the country. According to California Prison Focus, "no other
society in human history has imprisoned so many of its own citizens." The
figures show that the United States has locked up more people than any other
country: a half million more than China, which has a population five times greater
than the U.S. Statistics reveal that the United States holds 25% of the world’s
prison population, but only 5% of the world’s people. From less than 300,000
inmates in 1972, the jail population grew to 2 million by the year 2000. In
1990 it was one million. Ten years ago there were only five private prisons
in the country, with a population of 2,000 inmates; now, there are 100, with
62,000 inmates. It is expected that by the coming decade, the number will hit
360,000, according to reports.
What has happened over the last 10 years? Why are there so many prisoners?
"The private contracting of prisoners for work fosters incentives to lock
people up. Prisons depend on this income. Corporate stockholders who make money
off prisoners’ work lobby for longer sentences, in order to expand their
workforce. The system feeds itself," says a study by the Progressive Labor
Party, which accuses the prison industry of being "an imitation of Nazi
Germany with respect to forced slave labor and concentration camps."
The prison industry complex is one of the fastest-growing industries in the
United States and its investors are on Wall Street. "This multimillion-dollar
industry has its own trade exhibitions, conventions, websites, and mail-order/Internet
catalogs. It also has direct advertising campaigns, architecture companies,
construction companies, investment houses on Wall Street, plumbing supply companies,
food supply companies, armed security, and padded cells in a large variety of
According to the Left Business Observer, the federal prison industry produces
100% of all military helmets, ammunition belts, bullet-proof vests, ID tags,
shirts, pants, tents, bags, and canteens. Along with war supplies, prison workers
supply 98% of the entire market for equipment assembly services; 93% of paints
and paintbrushes; 92% of stove assembly; 46% of body armor; 36% of home appliances;
30% of headphones/microphones/speakers; and 21% of office furniture. Airplane
parts, medical supplies, and much more: prisoners are even raising seeing-eye
dogs for blind people.
CRIME GOES DOWN, JAIL POPULATION GOES UP
According to reports by human rights organizations, these are the factors that
increase the profit potential for those who invest in the prison industry complex:
• Jailing persons convicted of non-violent crimes, and long prison sentences
for possession of microscopic quantities of illegal drugs. Federal law stipulates
five years’ imprisonment without possibility of parole for possession
of 5 grams of crack or 3.5 ounces of heroin, and 10 years for possession of
less than 2 ounces of rock-cocaine or crack. A sentence of 5 years for cocaine
powder requires possession of 500 grams – 100 times more than the quantity
of rock cocaine for the same sentence. Most of those who use cocaine powder
are white, middle-class or rich people, while mostly Blacks and Latinos use
rock cocaine. In Texas, a person may be sentenced for up to two years’
imprisonment for possessing 4 ounces of marijuana. Here in New York, the 1973
Nelson Rockefeller anti-drug law provides for a mandatory prison sentence of
15 years to life for possession of 4 ounces of any illegal drug.
• The passage in 13 states of the "three strikes" laws (life
in prison after being convicted of three felonies), made it necessary to build
20 new federal prisons. One of the most disturbing cases resulting from this
measure was that of a prisoner who for stealing a car and two bicycles received
three 25-year sentences.
• Longer sentences.
• The passage of laws that require minimum sentencing, without regard
• A large expansion of work by prisoners creating profits that motivate
the incarceration of more people for longer periods of time.
• More punishment of prisoners, so as to lengthen their sentences.
HISTORY OF PRISON LABOR IN THE UNITED STATES
Prison labor has its roots in slavery. After the 1861-1865 Civil War, a system
of "hiring out prisoners" was introduced in order to continue the
slavery tradition. Freed slaves were charged with not carrying out their sharecropping
commitments (cultivating someone else’s land in exchange for part of the
harvest) or petty thievery – which were almost never proven – and
were then "hired out" for cotton picking, working in mines and building
railroads. From 1870 until 1910 in the state of Georgia, 88% of hired-out convicts
were Black. In Alabama, 93% of "hired-out" miners were Black. In Mississippi,
a huge prison farm similar to the old slave plantations replaced the system
of hiring out convicts. The notorious Parchman plantation existed until 1972.
During the post-Civil War period, Jim Crow racial segregation laws were imposed
on every state, with legal segregation in schools, housing, marriages and many
other aspects of daily life. "Today, a new set of markedly racist laws
is imposing slave labor and sweatshops on the criminal justice system, now known
as the prison industry complex," comments the Left Business Observer.
Who is investing? At least 37 states have legalized the contracting of prison
labor by private corporations that mount their operations inside state prisons.
The list of such companies contains the cream of U.S. corporate society: IBM,
Boeing, Motorola, Microsoft, AT&T, Wireless, Texas Instrument, Dell, Compaq,
Honeywell, Hewlett-Packard, Nortel, Lucent Technologies, 3Com, Intel, Northern
Telecom, TWA, Nordstrom’s, Revlon, Macy's, Pierre Cardin, Target Stores,
and many more. All of these businesses are excited about the economic boom generation
by prison labor. Just between 1980 and 1994, profits went up from $392 million
to $1.31 billion. Inmates in state penitentiaries generally receive the minimum
wage for their work, but not all; in Colorado, they get about $2 per hour, well
under the minimum. And in privately-run prisons, they receive as little as 17
cents per hour for a maximum of six hours a day, the equivalent of $20 per month.
The highest-paying private prison is CCA in Tennessee, where prisoners receive
50 cents per hour for what they call "highly skilled positions." At
those rates, it is no surprise that inmates find the pay in federal prisons
to be very generous. There, they can earn $1.25 an hour and work eight hours
a day, and sometimes overtime. They can send home $200-$300 per month.
Thanks to prison labor, the United States is once again an attractive location
for investment in work that was designed for Third World labor markets. A company
that operated a maquiladora (assembly plant in Mexico near the border) closed
down its operations there and relocated to San Quentin State Prison in California.
In Texas, a factory fired its 150 workers and contracted the services of prisoner-workers
from the private Lockhart Texas prison, where circuit boards are assembled for
companies like IBM and Compaq.
Oregon State Representative Kevin Mannix recently urged Nike to cut its production
in Indonesia and bring it to his state, telling the shoe manufacturer that "there
won’t be any transportation costs; we’re offering you competitive
prison labor (here)."
The prison privatization boom began in the 1980s, under the governments of
Ronald Reagan and Bush Sr., but reached its height in 1990 under William Clinton,
when Wall Street stocks were selling like hotcakes. Clinton’s program
for cutting the cutting the federal workforce resulted in the Justice Departments
contracting of private prison corporations for the incarceration of undocumented
workers and high-security inmates.
Private prisons are the biggest business in the prison industry complex. About
18 corporations guard 10,000 prisoners in 27 states. The two largest are Correctional
Corporation of America (CCA) and Wackenhut, which together control 75%. Private
prisons receive a guaranteed amount of money for each prisoner, independent
of what it costs to maintain each one. According to Russell Boraas, a private
prison administrator in Virginia, "the secret to low operating costs is
having a minimal number of guards for the maximum number of prisoners."
The CCA has an ultra-modern prison in Lawrenceville, Virginia, where five guards
on dayshift and two at night watch over 750 prisoners. In these prisons, inmates
may get their sentences reduced for "good behavior," but for any infraction,
they get 30 days added – which means more profits for CCA. According to
a study of New Mexico prisons, it was found that CCA inmates lost "good
behavior time" at a rate eight times higher than those in state prisons.
IMPORTING AND EXPORTING INMATES
Profits are so good that now there is a new business: importing inmates with
long sentences, meaning the worst criminals. When a federal judge ruled that
overcrowding in Texas prisons was cruel and unusual punishment, the CCA signed
contracts with sheriffs in poor counties to build and run new jails and share
the profits. According to a December 1998 Atlantic Monthly magazine
article, this program was backed by investors from Merrill-Lynch, Shearson-Lehman,
American Express and Allstate, and the operation was scattered all over rural
Texas. That state’s governor, Ann Richards, followed the example of Mario
Cuomo in New York and built so many state prisons that the market became flooded,
cutting into private prison profits.
After a law signed by Clinton in 1996 – ending court supervision and
decisions – caused overcrowding and violent, unsafe conditions in federal
prisons, private prison corporations in Texas began to contact other states
whose prisons were overcrowded, offering "rent-a-cell" services in
the CCA prisons located in small towns in Texas. The commission for a rent-a-cell
salesman is $2.50 to $5.50 per day per bed. The county gets $1.50 for each prisoner.
Ninety-seven percent of 125,000 federal inmates have been convicted of non-violent
crimes. It is believed that more than half of the 623,000 inmates in municipal
or county jails are innocent of the crimes they are accused of. Of these, the
majority are awaiting trial. Two-thirds of the one million state prisoners have
committed non-violent offenses. Sixteen percent of the country’s 2 million
prisoners suffer from mental illness.