Decision to phase out use of 14 contract prisons after investigative report found increased violence in facilities, fewer resources and ineffective cost.
Source
After we saw an investigation into private prisons and what a money maker they are (business), arresting people that really did not warrant it but makes for better profit with more prisoners.
So I am very glad to hear that they will be ending the use of private prisons.
Oh boo hoo, such a pity.
Wonder how many innocent people are locked up just to line your pockets?
It's a small step, but a step in the right direction none the less.
Prisons for 'profits' is a big business in American that no one really talks about.
And it does need to be stopped.
Welcome to Jail Inc: how private companies make money off US prisons
Quote:The Obama administration said on Thursday that it planned to end the federal government’s use of private prisons, after an inquiry found they were drastically more unsafe than publicly run facilities.
Deputy attorney general Sally Yates announced the decision in a memo to Thomas Kane, the acting director of the federal prisons bureau, which was published on the justice department’s website.
“I am eager to enlist your help in beginning the process of reducing – and ultimately ending – our use of privately operated prisons,” Yates said. Officials were directed to not renew or substantially downscale contracts with prison operators as they expire.
The decision immediately prompted a sharp decline in the share prices of America’s biggest private prison companies.
Yates said in her memo that research had found private prisons “simply do not provide the same level of correctional services, programs, and resources” and “do not save substantially on costs” either. Essential government education and training programs for prisoners “have proved difficult to replicate and outsource” in the private sector, she said.
The decision was announced days after the Department of Justice’s inspector general released a damning investigation report. It found instances of inmate-on-inmate assaults were 28% higher in contract prisons than in government-run facilities, and that the confiscation of contraband mobile phones occurred eight times more frequently.
Federal inmates in private prisons were found to be nine times more likely to be placed on lockdown than those at other federal prisons, and were frequently subjected to arbitrary solitary confinement.
Source
After we saw an investigation into private prisons and what a money maker they are (business), arresting people that really did not warrant it but makes for better profit with more prisoners.
So I am very glad to hear that they will be ending the use of private prisons.
Quote:Yates said in her memo that the use of at least three private prisons would be phased out over the next year and that the private prison population would be reduced to less than 14,200 by May 2017.
Private prisons are operated for the federal government by three companies: GEO Group, Corrections Corporation of America (CCA), and Management and Training Corporation.
CCA is the largest private prison operator, with a market cap of $3.2bn. Within an hour of the news on the government’s decision on Thursday, its shares had fallen in value by 52%, dropping from $27.06 per share to $13.
Shares of GEO group, the second-largest private prison firm, also fell by more than 45% during that time. With its shares dropping to $17.30 from $32.32, nearly $700m was shaved off GEO group’s earlier $2bn market valuation.
By noon on Thursday, trading on stocks in both companies had been halted due to their volatility and then reopened again.
Oh boo hoo, such a pity.
Wonder how many innocent people are locked up just to line your pockets?
It's a small step, but a step in the right direction none the less.
Prisons for 'profits' is a big business in American that no one really talks about.
And it does need to be stopped.
Welcome to Jail Inc: how private companies make money off US prisons