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In: Economics

How are the aims of a for-profit prison often at odds with the public good?

How are the aims of a for-profit prison often at odds with the public good?

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Expert Solution

The NSDA PFD topic for December 2014 is whether for-profit prisons in the US should be banned. A prison is “a place for the confinement and punishment of persons convicted of crimes.” The terms “jail” and “penitentiary” can also refer to a place of confinement where people convicted of crimes serve sentences. The best way to understand what a prison is might not be through dictionary definitions but how they are legally classified, as this topic presents a legal question of whether certain prisons (governmental/legal institutions should) should be legally prohibited.

Legally speaking, the form and function of a “prison” will depend on whether it is a state prison or a federal prison. A person who is prosecuted by a District Attorney and is convicted in state court of a state crime (such as theft, rape, or murder) will go to a state jail or a state prison. In most states, “jail” is where convicted criminal serve sentences for minor crimes (such as misdemeanors). “Jail” is also where a person charged with a crime will spend time awaiting trial unless they make “bail.” Bail is an amount of money a person in jail can pay to be released to guarantee a promise that they will show up for trial. So, if a person pays $100,000 in bail and promises to show up for trial to be let out of jail, but then fails to show up for trial, then the person forfeits the $100,000 and another warrant for their arrest will be issued. If the person shows up to trial, they generally receive their bail money back.

A person who is prosecuted by a U.S. Attorney and is convicted in a federal court of a federal crime (such as mail fraud, identity theft, or drug trafficking) will go to a federal prison. The Federal Bureau of Prisons runs the federal prison system, which tends not to separate their facilities up into prisons and jails, but rather, just prisons.  

In terms of ownership, prisons can be either owned by a government agency or a non- governmental organization. Government-owned prisons are usually regarded as not seeking to make a profit; although a government can charge inmates for prison services (such as food, water, clothing, shelter, etc.) many inmates have little or no money and thus charging the inmates would not be a great way to fund a prison’s operations.


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