Early history
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One of the earliest examples of prison privatization in the US was in Louisiana in 1844, where a company produced clothing in a factory with inmate labor.
[65][66] In 1852, on the northwest San Francisco Bay in California, inmates of the prison ship Waban began building a contract facility to house themselves at Point Quentin. The prison became known as
San Quentin, which is still in operation today, though it was partially transferred from private to public administration.
[67]
During
Reconstruction (1865–1876) in the south after the Civil War, plantations and businessmen sought to continue exploiting Blacks after the United States ratified the
13th Amendment, which abolished all forms of slavery "except as punishment for a crime". This exception allowed continued enslavement of Black people through
convict leases.
[65][68][69] Southern prisoners laid railroad tracks, worked on plantations, mined coal and performed other labor while enduring terrible conditions including torture as a form of punishment. The system was extremely profitable for former slaveowners and the states. For example, ten percent of Alabama’s budget came from convict leases between 1880 and 1904. This system of unpaid labor remained in place until the early 20th century.
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1980s–2009
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Federal and state governments have a long history of contracting out specific services to private firms, including medical services, food preparation, vocational training, and inmate transportation. However, the 1980s ushered in a new era of prison privatization as the
War on Drugs increased prison populations.
[66] Overcrowding and rising costs became increasingly problematic for local, state, and federal governments. Private business interests saw an opportunity to expand beyond simple contracting of services into the management and operation of entire prisons.
[70]
Modern private prisons first emerged in 1984 when the Corrections Corporation of America (CCA), now known as
CoreCivic, was awarded a contract to take over operation of a jail in
Hamilton County, Tennessee.
[71] The following year, CCA gained further public attention when it offered to take over the entire state prison system of Tennessee for $200 million. The bid was ultimately defeated due to strong opposition from public employees and the skepticism of the state legislature.
[72] Sixty-six additional private prisons were opened in the US between 1984 and 1990.
[66]
CCA's $52 million January 1997 purchase of Washington, D.C.'s $100 million Central Treatment Facility was "the first time a prison has been sold outright (although under a lease-back arrangement, ownership is supposed to revert to D.C. after 20 years)."
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