Should Prisons be Privatized?

Clear and convincing evidence from the United States and elsewhere shows that privatizing criminal correctional facilities results in better public service at a lower cost than government operation. When the modern correctional privatization movement started, it was widely believed that any private role would be limited to small facilities housing low-security prisoners. Today, however, it is common to see contract awards for facilities with rated capacities of between 1,000 and 2,000 prisoners and for prisoners requiring medium …

…cheaper to run, since as the head of one prison contractor estimates, his firm builds prisons for up to 40 percent less and operates them at up to 20 percent less than it costs the government while maintaining service quality. About 35 states now allow privatized prisons, but only 15 have awarded such contracts. Robin M. Grugal, "Prison Operator Thrives in Crime Crackdown," Investor's Business Daily, March 4, 1996. National Center for Policy Analysis. (2004). Retrieved May 30, 2004, from http://www.ncpa.org