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Wednesday, December 7, 2011

Crime / Economy Our Rising Prison Population Is a Great Business Opportunity!

Posted by Brendan Kiley on Wed, Dec 7, 2011 at 12:05 PM

Wikimedia Commons

Did you know that you can buy stocks in privatized prisons on the New York Stock Exchange?

You can! It's a great investment! Because here in the U.S. of A., we love to lock people up. (Especially people of color!) And entrust some of the most delicate parts of our social infrastructure (what to do with people who've stepped—or fallen—outside of the social contract) to people who have the social contract's best interests at heart: CEOs and stockbrokers!

... the prison population continues to grow, especially in the U.S. According to the U.S. Department of Justice, America has the largest number of inmates relative to its population: for every 100,000 residents, 750 are in prison.

I smell a business opportunity!

Since 1984, the U.S. prison population has more than tripled, according to U.S. Department of Justice data... the grim scenario is that demand for prison beds is growing faster than supply; unfortunately, recessions may actually see an increased crime rate.

The major publicly traded private prison companies are Corrections Corp and (NYSE:CXW), Geo (NYSE:GEO). On the surface, none appears to be screaming bargains based on the fundamental valuation variables. Corrections Corp., the big daddy of the group, is currently selling for 13 times earnings and 1.5 times book value. Geo trades at a P/E ratio of about 13. However, these businesses were trading at P/E multiples of more than 30 before the state budget crisis hit. That difference is certainly no reason to make any investment in today’s world.

The private prison system is, unfortunately, a growth industry. More and more states will seek to outsource whatever budget items they can if it leads to cost savings. These private prison companies control a significant portion of the market. They merit a closer look

Buy some stock in private prisons today!

Comments (17) RSS

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And go to this event here:

There will be a noise demonstration on New Years Eve at 8:00 PM in front of the King County Juvenile Detention Center on 1211 E Alder St - Seattle, WA 98122. This is in response to the international call out for actions against jails, prisons and detention centers. Wear black clothing and bring things to make noise.

http://pugetsoundanarchists.org/node/117…

Posted by bdurruti on December 7, 2011 at 12:11 PM

the private prison industry financed the anti-immigration laws passed in alabama & arizona. got a buck to make? can you buy an issue? that is how policy is made in america today.

Posted by philosophy school dropout on December 7, 2011 at 12:17 PM

I'm surprised we haven't figured out a way to make money from executions. The way Republicans cheer for death, it won't be long. At least Perry has found a way to make political hay out of executing innocent people (see Todd Willingham).

Posted by Vince on December 7, 2011 at 12:23 PM

@3 they broadcast them for the public in Texas on Pay-per-Spew.

Posted by Will in Seattle

on December 7, 2011 at 12:26 PM

"Our Rising Prison Population Is a Great Business Opportunity!"

Well duh, prison-industrials are safe as houses.

Posted by undead ayn rand on December 7, 2011 at 12:42 PM

But, with revenue-starved states slashing budgets at unprecedented levels, how can they continue to afford to pay for increased outsourced services provided by the for-profit Incarceration Industry?

Posted by COMTE

on December 7, 2011 at 12:58 PM

@6, it's an untouchable spending stream like "defense." Nobody's ever going to get together a strong enough voting bloc that they can't be successfully tarred as being "soft on crime" if they try to meaningfully reform the penal system.

Posted by balderdash

on December 7, 2011 at 1:09 PM

@4. No they are not broadcast. Not on pay per view or anywhere else. But they ought to be.

http://www.nytimes.com/2011/07/31/opinio…

Posted by gnossos on December 7, 2011 at 1:12 PM

So by "Buy some stock" you mean "Burn this motherfucker down," right?

Posted by balderdash

on December 7, 2011 at 1:20 PM

@2: Paul Allen's football stadium, Costco's liquor law.

Posted by Karlheinz Arschbomber

on December 7, 2011 at 1:33 PM

@10 don't forget the x-ray machines in the airports. those were pushed HARD by the manufacturer. oh and for maybe the biggest whopper of all, the law against the government bargaining for lower drug prices w/ the pharmaceutical industry. pretty much every policy issue is decided in this manner. not too robust of a democratic republic these days.

Posted by philosophy school dropout on December 7, 2011 at 1:42 PM

Then again, shareholder activism is a beautiful thing. If you buy stock they have to let you into the annual meeting.

I'm in for $5.

Posted by jt on December 7, 2011 at 1:47 PM

I see big opportunities for diversifying into the for-profit organ transplant business!

Posted by Proteus on December 7, 2011 at 2:00 PM

@13 Aha! You've cracked the code.

Posted by Vince on December 7, 2011 at 2:07 PM

#3

The value of a prisoner has probably been the one thing holding off executions.

#6

Gregoire is talking about big releases.

#5

I wonder to what extent the prison system is also a welfare system for people who can't cut it on the outside but can live in a minimal if regimented lifestyle.
(Not that I would want to try it myself...)

Posted by Supreme Ruler Of The Universe

on December 7, 2011 at 2:37 PM

@8 but they should. Made you look.

@15 current plans is they will be released on Mercer Island and at the Bravern, with maps to nearby mansions and floor plans and entry codes. Naturally, they will be armed, as is their Second Amendment right.

Posted by Will in Seattle

on December 7, 2011 at 2:51 PM

@2: Why would a company that makes its money locking up illegal immigrants finance an anti-immigrant law that is drying up the supply of illegal immigrants?

@6: They outsource to companies that pay their employees (wages + benefits) much less than members of public employee unions.

AAGH! MUST . . . STOP . . . RESPONDING . . . TO . . . DUMBASS . . . COMMENTS . . . ON . . . SSSSLOG . . . .
(cuts off hands).

Posted by the idiot formerly known as kk on December 7, 2011 at 9:54 PM