Question

Critics argue that some types of prison labor take away from free market enterprise. Should we be concerned with prison labor being a form of low cost labor that does not assist offenders in vocational rehabilitation but rather hinders capitalist markets?

Answer 1

• The state or federal government gets low cost labor, which it can then contract out to various private companies, who can use this labor to reduce their operating expenses and increase profits. The demand for low wage workers would be reduced due to the option of having prison labor at below minimum wage. Companies that use prison labor would gain a market advantage in lowered expenses, but might also have to address issues with lower quality, higher shrink, etc.
• Adding a profit motive increases the chances of bribery and corruption on the part of companies to take advantage of the profits.
• It is a concern since,the companies involved have less incentive to follow normal workplace regulations, and this could lead to improper behavior.Prison labor is slave labor of the worst sort. It takes jobs away from free people. And it gives the prison system and capitalist businesses that draw free labor from it incentives to figure out how to lock up an ever growing percentage of the population, slowly converting more and more to economic slavery and incarceration.
• Indeed,it is unfair for the honest employees who might be forced to compete with prison labours who are willing to accept lower wages for their services.Private companies anyway look for low cost labour,which could hinder the employment of honest workers.
• But,on the flip side private companies can also suffer from quality and productivity issues,as well as public image issues by hiring prison labour.