How do Prisons Make Money for the Government?

Throughout the world, there are no other countries with more people in prisons than the United States. As per research, worldwide, there were over 10 million people in prisons. Although, the United States has over 20 per cent of the total prisoners out of 4 per cent of the world’s population.

Now the question’s how do prisons make money for the government? Well, the U. S has both private and public prisons. Almost 91 per cent of the people are in public prisons. And 180,000 people are in a private prison for their criminal activities. The public prisons aim to house the inmates individually to bring them back from the streets. Private prisons aim for economic benefits. 

How Do Prisons Make Money For The Government

The governments choose a private prison company and put many of the burdens on them. Traditionally, all the businesses that go through with functioning a prison. Into prisons, the governments determine, categorize, and assign prisoners and provide decisions. Now the questions arise about how the private prison makes money.

A private prison company agrees to work with the governments on contract-based. It based this contract on behalf of payment which will continue state to the company. 

Overall, sometimes it’s based on the contract of the prison’s size, accommodation of inmates, and sometimes based on monthly to yearly earnings.

Let’s assume that to prison someone costs $100, and the capacity of a prison building is 1,000 inmates. To the Governments, a private prison company can approach these facilities and cost $150 per inmate a day. 

It can say that the government show interest goes through with this cost if this costs less than $150. And if the prison was operating publicly, then the government agrees to this terminology.

Saving money is wherever potential in any business case increases earnings, net income, and profit. Enlarge the business to earn more amounts of money requires the capital to do that. At last, it can say that providing these services in prisons makes money for the government.

Does Prison Make Money Is Questionable?

On the surface, the prison business is a good idea. If the cost per inmate is $200 and private companies offer $150 per inmate a day. 

Then the government should allow a private company to run the prison services. Here, the problems start in the finance on the furthers side, of the prison.

According to the research data, the reconviction and backslide rate was 83%, the rate possibly focusing on doubt. If, when the prisons are full of 100% effective, then it means that they are working for the business.

It makes us wonder, is the prison working for back street people or earning money? If it is for earning money, they aim to have a vast prison population. There seems to be another reason is that private prison company. Assume, the prison reduces the money from cleaning facilities, So the cost per prisoner descends to $140 per day.

Here they can profit $10 per day. If there are 1000 prisoners, they make a profit. Reducing money from the services yields an unhygienic environment for the inmates. It demolished the quality of prison facilities. For this reason, Nowadays, prison services are questionable.

Conclusion

Finally, it can say saving money is the aim of the government. It is the reason governments turn over to private prisons companies.

The law needs to be more strict than it will balance the streamlet of new inmates in prisons. A war between the arguer making profits is increasing drug activity. Year over year, many people are incarcerated in prisons. That is the prisons make money for governments.