Are private prisons a good investment?

Private prisons provide value to government in reducing costs and improving correctional facilities . They add to this by acting as a specialty financier and transferring the huge capital expenditures required to build and expand a prison onto their own balance sheet.

Who owns the most stock in private prisons?

At the same time, BlackRock is the largest investor in U.S. private prison firm CoreCivic , with a stake of 15.38%.

Who profits from private prisons?

In 2020, CoreCivic reported $1.9 billion in revenue, 82.2% of that coming from its private prison operations. Only 3.4% of CoreCivic's revenue was generated through “Community” contracts, such as the one it holds with CDCR. The majority of CoreCivic and GEO Group's revenues come from their private prison business.

How do people profit off of private prisons?

A private prison can offer its services to the government and charge $150 per day per inmate . Generally speaking, the government will agree to these terms if the $150 is less than if the prison was publicly run. That difference is where the private prison makes its money.

Do private prisons make a lot of money?

The private sector came to be seen as a quick-fix to the problem of overcrowded, understaffed public prisons. Today, privatized prisons make up over 10% of the corrections market—turning over $7.4 billion per year .

Who owns the most prisons in America?

CoreCivic Inc, formerly the Corrections Corporation of America, is a Nashville-based company that owns, leases, and operates prisons, immigration detention centers, and residential reentry centers in the U.S. It owns or manages 74 prisons and jails in the U.S. with a total capacity of 74,957 beds, which are 56% of all ...

How much taxpayer money goes to private prisons?

Key Statistics: Total U.S. government expenses on public prisons and jails: $80.7 billion + On private prisons and jails: $3.9 billion +

What states have for profit prisons?

Montana is not alone in its heavy reliance on private prisons. Arizona, Hawaii, New Mexico, Oklahoma, and Tennessee rely considerably on private prisons for housing imprisoned people. In these states, between 21% and 45% of the prison population resides in a for-profit prison (See Table 1).

Is the privatization of prisons a good or bad thing?

Private prisons are more dangerous than publicly run facilities . According to a U.S. Department of Justice study covering federal prisons, violent attacks by inmates on correctional staff were 163% higher in private than in public prisons, and inmate-on-inmate assaults were nearly 30% higher.

Are private prisons growing?

Key Findings: Of the total U.S. prison population, one in 12 people (128,063) was incarcerated in private prisons in 2016; an increase of 47 percent since 2000. 26,249 people were also confined in privately-run immigration detention facilities in fiscal year 2017; a 442 percent increase since 2002.

Are private prisons becoming more popular?

Since 2000, the number of people housed in private prisons has increased 10% . Harmful crime policies of the 1980s and beyond fueled a rapid expansion in the nation's prison population. The resulting burden on the public sector led to the modern emergence of for-profit prisons in many states and the federal system.

Why are private prisons better than public?

Some reports have shown that private prisons are less dangerous . It should be noted, however, that those convicted of violent crimes are usually sent to public prisons, since private prisons can choose which offenders to take in, based on the estimated cost of security.

Are You Unknowingly Investing In Private Prisons? (2024)

More From Forbes

Sep 18, 2023,07:36pm EDT

10 Essential Money Tips For Young Adults

Sep 18, 2023,01:30pm EDT

Attorneys Who Aided Debtors Hit With $4.5 Million In Attorney Fees

Sep 17, 2023,03:51pm EDT

Bureau Of Prisons’ Challenges With First Step Act Release Dates

Sep 14, 2023,04:43pm EDT

This Week In Credit Card News: A Proposed Cap On Credit Card Rates; Buy Now Pay Later Usage Doubled Since 2021

Sep 14, 2023,12:30pm EDT

10 Fabulous Tax-Planning Strategies For High-Income Gay Couples

Sep 18, 2023,07:36pm EDT

10 Essential Money Tips For Young Adults","scope":{"topStory":{"index":1,"title":"10 Essential Money Tips For Young Adults","image":"https://specials-images.forbesimg.com/imageserve/650760f0b7ff4ee0642250bc/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 18, 2023","hourMinute":"07:36","amPm":"pm","isEDT":true,"unformattedDate":1695080210419},"uri":"https://www.forbes.com/sites/enochom*ololu/2023/09/18/10-essential-money-tips-for-young-adults/"}},"id":"92ie2pjkarrc00"},{"textContent":"

Sep 18, 2023,01:30pm EDT

Attorneys Who Aided Debtors Hit With $4.5 Million In Attorney Fees","scope":{"topStory":{"index":2,"title":"Attorneys Who Aided Debtors Hit With $4.5 Million In Attorney Fees","image":"https://specials-images.forbesimg.com/imageserve/6508885d47c821859d2250b8/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 18, 2023","hourMinute":"01:30","amPm":"pm","isEDT":true,"unformattedDate":1695058229003},"uri":"https://www.forbes.com/sites/jayadkisson/2023/09/18/attorneys-who-aided-debtors-hit-with-45-million-in-attorney-fees/"}},"id":"d9mhdh3k9agg00"},{"textContent":"

Sep 17, 2023,03:51pm EDT

Bureau Of Prisons’ Challenges With First Step Act Release Dates","scope":{"topStory":{"index":3,"title":"Bureau Of Prisons’ Challenges With First Step Act Release Dates","image":"https://specials-images.forbesimg.com/imageserve/64ecf32edd5d8d69914af6bb/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 17, 2023","hourMinute":"03:51","amPm":"pm","isEDT":true,"unformattedDate":1694980316403},"uri":"https://www.forbes.com/sites/walterpavlo/2023/09/17/bureau-of-prisons-challenges-with-first-step-act-release-dates/"}},"id":"3a7m389amqkc0"},{"textContent":"

Sep 15, 2023,02:46pm EDT

12 New Ways To Qualify For Social Security Disability Payments: Certain Medical Conditions Open The Door","scope":{"topStory":{"index":4,"title":"12 New Ways To Qualify For Social Security Disability Payments: Certain Medical Conditions Open The Door","image":"https://specials-images.forbesimg.com/imageserve/616ef61040bee1836259dcf7/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 15, 2023","hourMinute":"02:46","amPm":"pm","isEDT":true,"unformattedDate":1694803560817},"uri":"https://www.forbes.com/sites/johnwasik/2023/09/15/12-new-ways-to-qualify-for-social-security-disability-payments-certain-medical-conditions-open-the-door/"}},"id":"7qof84mehcpk00"},{"textContent":"

Sep 15, 2023,09:03am EDT

Coco Gauff’s ESPN Viewership Delivers On The Court And In The Ratings","scope":{"topStory":{"index":5,"title":"Coco Gauff’s ESPN Viewership Delivers On The Court And In The Ratings","image":"https://specials-images.forbesimg.com/imageserve/650455633e0a04ae7152ccc5/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 15, 2023","hourMinute":"09:03","amPm":"am","isEDT":true,"unformattedDate":1694782988230},"uri":"https://www.forbes.com/sites/korihale/2023/09/15/coco-gauffs-espn-viewership-delivers-on-the-court-and-in-the-ratings/"}},"id":"f63j75ojg42800"},{"textContent":"

Sep 15, 2023,12:53am EDT

A Predicted Soft Economic Landing May Have An Undertow","scope":{"topStory":{"index":6,"title":"A Predicted Soft Economic Landing May Have An Undertow","image":"https://specials-images.forbesimg.com/imageserve/6503e320fd72dcfb262250b8/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 15, 2023","hourMinute":"12:53","amPm":"am","isEDT":true,"unformattedDate":1694753627884},"uri":"https://www.forbes.com/sites/eriksherman/2023/09/15/a-predicted-soft-economic-landing-may-have-an-undertow/"}},"id":"pfi9ibjpm6g00"},{"textContent":"

Sep 14, 2023,04:43pm EDT

This Week In Credit Card News: A Proposed Cap On Credit Card Rates; Buy Now Pay Later Usage Doubled Since 2021","scope":{"topStory":{"index":7,"title":"This Week In Credit Card News: A Proposed Cap On Credit Card Rates; Buy Now Pay Later Usage Doubled Since 2021","image":"https://specials-images.forbesimg.com/imageserve/62f564a9f7076a81a8fe6378/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 14, 2023","hourMinute":"04:43","amPm":"pm","isEDT":true,"unformattedDate":1694724230408},"uri":"https://www.forbes.com/sites/billhardekopf/2023/09/14/this-week-in-credit-card-news-a-proposed-cap-on-credit-card-rates-buy-now-pay-later-usage-doubled-since-2021/"}},"id":"947447e0qph400"},{"textContent":"

Sep 14, 2023,12:30pm EDT

10 Fabulous Tax-Planning Strategies For High-Income Gay Couples","scope":{"topStory":{"index":8,"title":"10 Fabulous Tax-Planning Strategies For High-Income Gay Couples","image":"https://specials-images.forbesimg.com/imageserve/64b6d948827e8ddd5a5b79a0/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 14, 2023","hourMinute":"12:30","amPm":"pm","isEDT":true,"unformattedDate":1694709000000},"uri":"https://www.forbes.com/sites/davidrae/2023/09/14/10-fabulous-tax-planning-strategies-for-high-income-gay-couples/"}},"id":"c57hok1bep8g00"}],"breakpoints":[{"breakpoint":"@media all and (max-width: 767px)","config":{"enabled":false}},{"breakpoint":"@media all and (max-width: 768px)","config":{"inView":2,"slidesToScroll":1}},{"breakpoint":"@media all and (min-width: 1681px)","config":{"inView":6}}]};

Are You Unknowingly Investing In Private Prisons? (2024)

More From Forbes

FAQs

Are private prisons a good investment? ›

Are private prisons becoming more popular? ›