Ohio First State to Sell Prisons to Private Company; Bad Policy and Worse Economics

But It Will Make Conservatives Look Good in the Short Term

The role of the state in society is one that is constantly under scrutiny and subject to debate.  But one role, the operation of prisons has not been controversial.  It has been established for centuries that a proper role of government is the ownership and operations of prisons.

So Conservatives, you know, those who want to “conserve” and not vary from historical practices should be the last group to want the government to sell off prison to private, for profit groups.  But such logic cannot withstand the force of lower taxes.  By selling prisons a state government will reap a temporary windfall which can support lower taxes, and at the same time create a huge problem for future generations, which also seems to be part of the Conservative agenda.

Ohio has become the first state to sell off a prison.  The process was authorized in a budget passed by Republicans.  There is a lot for Conservatives to cheer about here, the main thing being that this will reduce the number public employees, employees who may be in a union and who may support Democrats.  And by using the one time proceeds to support lower taxes, Republicans can fulfill their need to strip the state of revenues.

Privatizing Prison is a terrible act of public policy because in the long term it is simply not in the public interest to do so.  Those who operate private prisons will have the incentive to increase rather than decrease the number of inmates.  They make more money when more money, not less is spent on incarceration.  The operators will have the incentive to press for more stringent criminal laws and for longer sentences.  This type of lobbying has already been documented.

The sale of prison facilities creates a new source of corruption of public officials.  Private companies will lobby heavily and contribute heavily to political campaigns of those who may favor their bids for the prisons and favaor increases in payments to the prisons to house state prisoners.    Bribery and kickback scandals may well result.

Corrupt activity inside prisons is currently a major issue within public facilities.  Without state oversight the expectation has to be that increased corruption within the prisons will take place.  More drug deals and other illegal activities are likely to take place.

At the end of the day, decades into the future investigations will show that the sale of prisons to private profit making companies will turn out to have been an economic and social disaster, with higher not lower costs of incarceration, more people incarcerated longer, less rehabilitation and more corruption.  But by the times those investigations are made and future generations are saying “what were you thinking when you did this?” those who did this will be long gone.