Question

What are the economic implications of prison privatization??

Answer 1

Privatization of prisons began in the 1980s as president Reagan expanded the War on drugs which were declared by his predecessor in 1971. The administration oversaw the passage of various legislatures such as Comprehensive crime control act of 1984 which enhanced penalties for drug crimes. As regulations cracked down on nonviolent offenders, outside contractors were mandatory to lessen the burden on the size of prisons. Over time, this move led to privatization and further became responsible for state prisoners and federal prisoners.

Private prisons are nongovernment entities which work on behalf of the government. They do not disclose their financial data to the public and hence it is difficult to say with certainty about their comparable costs over public facilities.