In: Economics
How did the convict leasing system evolve? How did this policy/practice serve to maintain the power dynamic between Blacks and Whites? What are the implications of this history on current race relations, if any?
The South's economy, culture, and government were in shambles during the Civil War. Southern state governments have been trying to raise funds to rebuild broken infrastructure and to fund additional spending, such as compulsory public education. The prison dilemma was extremely complex, as most gaols were demolished after the war. African-American slaves have previously been subjected to punishment at the hands of their masters. The question of when and how to house convicts was important, with government ineffectiveness and a rise in both white and black lawlessness.
Initially, private contractors were compensated by several states to hold and feed the inmates. In a few years, states found that they could lease their convicts to local planters or industrialists who would pay the workers minimum wages and be responsible for their lodging and feeding, thereby reducing costs and increasing profits. Later, markets formed for convicted labourers, with merchants buying and selling leases for convicted labour. Employers had only a limited financial investment in imprisoned labourers, with no desire to handle them well, as opposed to slavery. Convict workers were frequently dismally handled, but for the states and the bosses, the convict lease programme was extremely lucrative.
Southern states debated with what to do as national sentiment expanded for the plight of convicted labourers. The loss of income was considerable, and the cost of housing convicts was high. Eventually, more southern states stopped leasing their incarcerated employees, rather than having them employed on public projects.