Publicly Traded Justice

Authors

Samuel Ludington, University of Miami School of Law

Document Type

Comment

Abstract

Private prisons, like hotels, are most profitable when they are at maximum occupancy and their guests stay for longer periods of time. Because the business-model for private prisons is predicated on incarceration rates dictated by public policy, one would presume that private prison corporations expend great resources to advocating for stricter criminal laws and sentencing. This note explores the role of political lobbying and campaign contributions of private prison corporations to see if a correlative relationship exists between their advocacy and stricter crime laws. Part I of the note provides a history of private prisons in America and explores the laws which lead to the explosive growth in prison populations. Part II will provide an overview of the three largest providers of private prisons and analyzes their political contributions. Part III discusses other business development strategies employed by private prison operators, outside of traditional political lobbying schema. Part IV discusses the present threat to private prison organizations and concludes that public outrage with the capitalization of incarceration, poses an existential threat to private prisons. While private prisons have expended significant resources in political lobbying, the greatest dividends were attributable to their involvement in the American Legislative Exchange Council, which allowed private prisons to draft legislation that produced demand for their services. Nevertheless, these legislative victories are unlikely to withstand the threat posed by widespread public frustration, which has limited these corporations’ access to the capital necessary to sustain their operations.

Recommended Citation

Samuel Ludington, Publicly Traded Justice, 29 U. MIA Bus. L. Rev. 93 (2021)
Available at: https://repository.law.miami.edu/umblr/vol29/iss2/6