By Joseph R. Wheeler,
Executive Editor
There is no escape from crime in our society and
culture. It is pervasive and affects every aspect of life
every single day. From the subtle incidents of road rage
on the daily commute to work to the gas station that
requires you to prepay for fuel and then stops the flow
of gas through the line while the meter continues to register
mythical fuel flowing into your automobile's very
real and very empty gas tank; to the bully that has your
kids underachieving in school just to avoid harassment
or physical harm; to your retirement fund that was
bilked of profits taken by corporate executives prior to
placing the company into bankruptcy; to the doctor who
reports to the emergency room too high to perform the
surgery but proceeds anyway only to bury both his mistake
and the hapless patient; to the cleric who sexually
abuses a parish member promising absolution from all
sin and a "go to heaven pass" in exchange for sexual
favors; to the elected official who personally profits from
the billion dollar Katrina clean-up by awarding un-bid
contracts to his own business interests-it's all crime
and affects each and everyone of us every single day we
live and breathe.
However, in coming issues this column will attempt
to look beyond the moral issues or the issues of guilt or
innocence and focus on the economic impact of crime
on our society. Some aspects of the analysis are all too
apparent. In other examples it might not be as easy to
understand the economics associated with the criminal
justice system.
For example, there are 2,000,000 (2 million)
Americans incarcerated in local, state, and federal
jails-more prisoners than any other country on the
planet. There are another 3 million citizens under the
supervision of the criminal justice system.
U.S. taxpayers contribute nearly 190 billion dollars
a year to support the criminal justice system that
includes law enforcement officers, public defenders,
and civilian prison employees. Having identified where
the money comes from, this column will address where
the money goes and the impact on the U.S. economy.
Are you aware that in 2004 private sector companies
purchased $514.6 million dollars in goods and
services from Federal Prison Industries, Inc. (UNICORE)?
More than 19,300 inmates were paid from 23
cents per hour to $1.10 per hour to produce everything
from office furniture to medical orthopedic/prosthetic
supplies.
Correctional Corporation of America (CCA) is a
publicly traded corporation that operates more than 60
correctional institutions in 20 states. Approximately 40
of these facilities are owned and operated by CCA. In
2004, the company had revenues of more than a billion
dollars with growth in excess of 10% annually.
These are the areas to be probed in future articles
that will appear in this column. Again, look to read issues
in economic reality-not emotional banter.
About The Author: Joseph R. Wheeler is former Ford
Foundation Fellow in Economics and a practicing
International Business Consultant for more than 30
years. His by-line has appeared in local, national
and international publications and he is an award
winning independent television producer. He has
taught Economics and Marketing at Bauder College,
and delivered keynote addresses to national forums
on topics ranging from economic development, and
the fine arts, to outdoor recreation.
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