Well-known consumer advocate and one-time presidential candidate Ralph Nader has called for the Republican and Democratic parties to discuss the true costs of incarceration, calling for a campaign of public awareness to expose the "Prison-Industrial Complex."
Barron's financial weekly is bearish on the stock of Corrections Corporation of America, (CCA), pointing out that CCA has cost advantages over the public-prison sector, paying lower non-union wages and more automated technology. According to Barron's, CCA is counting on "the old standby of recidivism to keep prison head counts growing, filling its empty beds." for the communities where prisons are located, prisons are important job engines.
Thanks to the War on Drugs, there is a steady supply of non-violent drug offenders, estimated to be over half a million people nationwide, or 25% of confined prisoners.
The Harvard Business Review in its January-February 2012 issue has called for a solution to a problem that costs American taxpayers $68 billion a year: reducing recidivism.
The article by Eric Schmidt outlines how: government would float "social impact bonds" to investors, generally foundations, "who'd bet on the ability of (private) companies, community groups, and other qualified parties to provide services like education for the many inmates who are high school dropouts. The money raised would fund social programs...if, after...five years...the program had a significant positive impact...investors would get their money back with a premium.
Perhaps, with a little publicity from the likes of Nader and business experts such as Mr. Schmidt, American society would benefit, even if CCA shareholders did not.
