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Editorial
See other Editorial Articles

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: 274
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

Paul Krugman Go to Columnist Page » Blog: The Conscience of a Liberal Related News

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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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Begin Trace Mode for Comment # 17.

#2. To: tom007 (#0)

Now, someone will surely point out that nonprivatized government

An oxymoron (plural oxymorons or oxymora) (from Greek ὀ¾Í¼ÉÁ¿½, "sharp dull") is a figure of speech that combines contradictory terms.

for instance:

"the U.S. Department of Justice"

United States Department Of Justice
2675 Prosperity Avenue, Fairfax, VA 22031-4906

(703) 561-7136

Company Info

Revenue: Information not found

Employees: Information not found

Years in Business:Information not found

About United States Department Of Justice

United States Department Of Justice in Fairfax, VA is a private company categorized under Legal Counsel and Prosecution. Our records show it was established in and incorporated in Virginia. Register for free to see additional information such as annual revenue and employment figures.

Products or Services: Attorney's, General Practice Lawyer, Business Law Advice, Lawyer and Divorce Legal Services.....

Other Companies Like:

United States Department Of Justice

* Consolidated Executive Office
* Immigration Review, Executive Office For
* Culpeper County Attorney
* County Of Rockingham

* Office Of Hearings & Appeals"

http://www.manta.com/c/mtgnh8n/u...tes-department-of-justice

IOW "government" is a FOR-PROFIT RACKET.

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

We all need to learn about CAFRs.

"...Which do you want? A government operating as a self serving corporate for profit enterprise, or financial self sufficiency coming from government without taxation, and true freedom with financial security for all based on the individual's unrestrained productivity benefiting a truly free world economy?...."

Comprehensive Annual Financial Reports: The Key to Corruption in Government

freedom4um.com/cgi-bin/readart.cgi?ArtNum=11435

cafr1.com/ Home Page - "Government's" True Wealth Exposed.

AllTheKings'HorsesWontDoIt  posted on  2012-06-25   11:45:08 ET  Reply   Untrace   Trace   Private Reply  


#17. To: tom007 (#2)

United States Department Of Justice in Fairfax, VA is a private company categorized under Legal Counsel and Prosecution. Our records show it was established in and incorporated in Virginia. Register for free to see additional information such as annual revenue and employment figures.

Products or Services: Attorney's, General Practice Lawyer, Business Law Advice, Lawyer and Divorce Legal Services.....

Other Companies Like:

United States Department Of Justice

* Consolidated Executive Office * Immigration Review, Executive Office For * Culpeper County Attorney * County Of Rockingham

* Office Of Hearings & Appeals"

www.manta.com/c/mtgnh8n/u...tes-department-of-justice

IOW "government" is a FOR-PROFIT RACKET.

www.manta.com/c/mtgnh8n/u...tes-department-of-justice

interesting...now locked...the info i posted above is now unavailable unless you first register....same with other "government" offices i randomly searched. God forbid we should easily find out what the racket is up to. guess i struck a nerve.

AllTheKings'HorsesWontDoIt  posted on  2012-06-30   17:32:50 ET  Reply   Untrace   Trace   Private Reply  


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