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Editorial
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Title: Prisons, Privatization, Patronage
Source: [None]
URL Source: http://www.nytimes.com/2012/06/22/o ... onage.html?_r=2&ref=columnists
Published: Jun 25, 2012
Author: PAUL KRUGMAN
Post Date: 2012-06-25 10:30:31 by tom007
Keywords: None
Views: 191
Comments: 17

Prisons, Privatization, Patronage By PAUL KRUGMAN Published: June 21, 2012 702 Comments

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Over the past few days, The New York Times has published several terrifying reports about New Jersey’s system of halfway houses — privately run adjuncts to the regular system of prisons. The series is a model of investigative reporting, which everyone should read. But it should also be seen in context. The horrors described are part of a broader pattern in which essential functions of government are being both privatized and degraded. Fred R. Conrad/The New York Times

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First of all, about those halfway houses: In 2010, Chris Christie, the state’s governor — who has close personal ties to Community Education Centers, the largest operator of these facilities, and who once worked as a lobbyist for the firm — described the company’s operations as “representing the very best of the human spirit.” But The Times’s reports instead portray something closer to hell on earth — an understaffed, poorly run system, with a demoralized work force, from which the most dangerous individuals often escape to wreak havoc, while relatively mild offenders face terror and abuse at the hands of other inmates.

It’s a terrible story. But, as I said, you really need to see it in the broader context of a nationwide drive on the part of America’s right to privatize government functions, very much including the operation of prisons. What’s behind this drive?

You might be tempted to say that it reflects conservative belief in the magic of the marketplace, in the superiority of free-market competition over government planning. And that’s certainly the way right-wing politicians like to frame the issue.

But if you think about it even for a minute, you realize that the one thing the companies that make up the prison-industrial complex — companies like Community Education or the private-prison giant Corrections Corporation of America — are definitely not doing is competing in a free market. They are, instead, living off government contracts. There isn’t any market here, and there is, therefore, no reason to expect any magical gains in efficiency.

And, sure enough, despite many promises that prison privatization will lead to big cost savings, such savings — as a comprehensive study by the Bureau of Justice Assistance, part of the U.S. Department of Justice, concluded — “have simply not materialized.” To the extent that private prison operators do manage to save money, they do so through “reductions in staffing patterns, fringe benefits, and other labor-related costs.”

So let’s see: Privatized prisons save money by employing fewer guards and other workers, and by paying them badly. And then we get horror stories about how these prisons are run. What a surprise!

So what’s really behind the drive to privatize prisons, and just about everything else?

One answer is that privatization can serve as a stealth form of government borrowing, in which governments avoid recording upfront expenses (or even raise money by selling existing facilities) while raising their long-run costs in ways taxpayers can’t see. We hear a lot about the hidden debts that states have incurred in the form of pension liabilities; we don’t hear much about the hidden debts now being accumulated in the form of long-term contracts with private companies hired to operate prisons, schools and more.

Another answer is that privatization is a way of getting rid of public employees, who do have a habit of unionizing and tend to lean Democratic in any case.

But the main answer, surely, is to follow the money. Never mind what privatization does or doesn’t do to state budgets; think instead of what it does for both the campaign coffers and the personal finances of politicians and their friends. As more and more government functions get privatized, states become pay-to-play paradises, in which both political contributions and contracts for friends and relatives become a quid pro quo for getting government business. Are the corporations capturing the politicians, or the politicians capturing the corporations? Does it matter?

Now, someone will surely point out that nonprivatized government has its own problems of undue influence, that prison guards and teachers’ unions also have political clout, and this clout sometimes distorts public policy. Fair enough. But such influence tends to be relatively transparent. Everyone knows about those arguably excessive public pensions; it took an investigation by The Times over several months to bring the account of New Jersey’s halfway-house-hell to light.

The point, then, is that you shouldn’t imagine that what The Times discovered about prison privatization in New Jersey is an isolated instance of bad behavior. It is, instead, almost surely a glimpse of a pervasive and growing reality, of a corrupt nexus of privatization and patronage that is undermining government across much of our nation. A version of this op-ed appeared in print on June 22, 2012, on page A25 of the New York edition with the headline: Prisons, Privatization, Patronage.

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#4. To: tom007 (#0) (Edited)

1940's Secret "Corporate" Tactic By Which Government Took All! By Walter Burien 05/10/09

Many people have asked for a simple explanation as to the intent behind the CAFR and what happened over the decades?

Well, in a nut shell here is the foundation block that allowed government to take it all over by investment.

It started in the mid 40's and grew into what we have in government now seventy years latter come 2009.

Government started out as a "pay as you go" structure. By transforming into a corporate liability company over the decades, this gave them the ability to use "advance projections" to strip annual operating funds and create advance forward liability accounts whereby in doing so they were able to by stealth build numerous "wealth bases" of equity in many designated fund balances separate from the budget reports that were exclusively presented for public viewing.

When looking at the "whole picture" through the CAFR and sub investment fund reports noted per gross income, only 1/3rd is tax income whereas when you look at a budget report for the year it gives the impression per gross income that nearly 100% is tax income. Very deceptive when only one side of the coin is presented.

Budget reports are presented giving the false impression that it "is" the true financial picture and it is far from it. What is shown is primarily tax income for a "selective grouping" of accounts where tax income is collected and expended.

Review a few CAFR surplus reviews - cafr1.com/ShowMeTheMoney.html

The takeover by government was primarily orchestrated by attorneys, both private and acting from within the Judiciary on the city, county, and state level. Many private associations were created since the 40's to push government along into becoming an administrative clearing house for revenue collection and control with many of these private associations calling the shots and firmly entrenched in the ever expanding cash flow from the trough. Laws were "created" as each and every push was moved forward to consolidate and expand the takeover by government as the public was masterfully entertained with distraction, misdirection, and misinformation due to the money involved.

Where has all this brought us today? I strongly recommend that all look at their local "County" CAFR. I have noticed a disturbing trend being forcefully implemented by the attorney complex in control today. (65% of Governors, Senators, and Congressmen are now attorneys) The place to look in your County CAFR is the Statistical Section at the end of the report. Currently most counties will give a ten year or a six year showing of the growth.

Many County CAFRs that I have looked at from the eastern side of the country show that over the last six to ten years:

1. There was a 100% increase in property taxes collected.

2. There was a 100% to 135% increase in the money pouring into the judiciary.

3. There was a 100% to 115% increase in the money pouring in to the prisons run by the county.

One thing I found particularly interesting was that even though their was over a 100% increase in cash flowing into the prisons, the prison average daily population had decreased in many a cases. Also I took note that the personnel working for the prisons was the largest employee base working for the county.

Now there were modest increases in social services programs for the youth, adults, and elderly, but nothing in comparison to the take being facilitated by the attorney complex for Judiciary and Prisons. It appears the trend is gearing up to "process" more people through the courts and prisons based on the money being applied.

Has the increase in processing the people started yet? By the numbers as of 2007 it appears not yet. I have a feeling though by 2010, they will be in full swing and who knows, the reader of this post may just be the lucky recipient of this expanding government service..

The middle class natives are getting restless with massive increases in forced taxation, home confiscations, job loss, and a weakened economy from the last and massive wealth transfer of trillions taken from one hand and transferred to the other hand through international market derivative manipulation. I still would like to know how many trillions of dollars ended up in those off-shore government accounts for a clear showing of profit held in "the other hand".

I will give you an example County CAFR to look at here from 2007. It is from York, PA. - cafr1.com/STATES/PA/COUNTY/York2007CAFR.pdf

I am not picking on York but the showing in their statistical section is a clear example of what is brought forward in this article. Look at theirs and then look at your own county CAFR to see if the same findings are evident in your own.

We all are the end target of our government's intent. Where they apply the money and the showing of their own growth establishes their intent.

Look and comprehend. It is your asses that are on the line in the end. Either by paying the bill or as a forced beneficiary of the structure created, or in some cases both.

When the people realize the true end result of allowing attorneys to takeover and run the show and when the people take true action to stop it, then maybe the tide will change. Until then, the stench of death will grow nearer and in most probability ever present in the air as the ever-expanding made "legal" plunder and theft out of opportunity continues unabated..

TREASON: "Treason doth never prosper; what's the reason? For if it prosper, none dare call it treason." Sir John Harrington, 1561-1612

Sent FYI from and truly yours,

Walter J. Burien, Jr.
P. O. Box 2112
< Saint Johns, AZ 85936

email: WalterBurien@CAFR1.com

Tel. (928) 445-3532

Please Help CAFR1 With Operating Funds:

cafr1.com/Secret.html

=============================

Prisoners In America [a Racket]

redemptionservice.com/con.../prisoners_in_america.asp

AllTheKings'HorsesWontDoIt  posted on  2012-06-25   12:58:53 ET  Reply   Untrace   Trace   Private Reply  


#7. To: AllTheKings'HorsesWontDoIt (#4)

CAFR

Comprehensive Annual Financial Report

This is where you find the info on just what your State owes. If the governmental unit is too small to have its own Report, it does a Combined Annual Financial Report with several other governmental units.

If you did not know this information, you have now been educated. ;)

BTP Holdings  posted on  2012-06-25   17:59:51 ET  Reply   Untrace   Trace   Private Reply  


#8. To: BTP Holdings (#7)

This is where you find the info on just what your State owes.

is that "owes" or "owns"?

AllTheKings'HorsesWontDoIt  posted on  2012-06-26   8:24:35 ET  Reply   Untrace   Trace   Private Reply  


#13. To: AllTheKings'HorsesWontDoIt (#8)

is that "owes" or "owns"?

If I recall, it is "owes". It also lists all property "owned" by the State.

BTP Holdings  posted on  2012-06-26   16:45:09 ET  Reply   Untrace   Trace   Private Reply  


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