Private Prisons
In the example of prison privatization, following this “linear” thinking of profit maximization equaling low quality service and thus suboptimal conditions for inmates, generates arguments relating to negative externalities. Corporations such as CCA argue that they can systematically reduce operating expenses while minimizing externalities and social costs. According to the Ohio State Department of Rehabilitation and Corrections, the sale and outsourcing of the Lake Erie prison will cost the state 6% annually less to run amounting to a savings of $3 million per year. CCA has gone on the record saying that it will keep over 90% of the existing jobs in Ohio. As mentioned earlier, a lack of reliable information challenging these assertions of measurable cost reductions is a major concern to elected officials. On February 14th the state of Florida, also desperate to cut its budget deficit, held a controversial vote to privatize state prisons. Ultimately, Republicans rejected the bill in a tight 21-19 vote, dividing the caucus. Those voting against privatization sighted a lack of transparency on the forecasted budget savings. While we believe that many government services would be better of if privatized, the incentives and processes regarding prison privatization must be explored further. Actual evidence demonstrates that the actual privatization process has