Friday, August 21, 2009

Private Prisons as Growth Opportunities!

A post on Seeking Alpha this morning describes investment opportunities in private prisons. The article notes that the Corrections Corporation of America controls more prison bed space than all other government entities, excepting the federal government and 2 states.

The article notes the prison population is bound to expand and that the U.S. prison population continues to rise as a percentage of the total population.

This trend coupled with the privatization of prisons apparently constitute an investment opportunity.

Consider this post in relation to growing "structural unemployment" among lower socio-economic classes in the US.

The current recession has impoverished millions of people who may, in their desperation, resort to criminal opportunities. Or, they may simply follow the lead of America's leading capitalists such as Goldman Sachs. In either case, crime is sure to rise.

Yet what an opportunity this presents for those still holding capital available for investment.

Although less opportunities exist for exploiting the poor's labor in the workforce, new opportunities exist for extracting value from the poor through their incorporation in the prison-industrial complex. Government taxes support this incarceration, completing the transfer of wealth from the general populace to the wealthiest elites.

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