Mexican detainees leave Harlingen, Tex., on their way to the border LM Otero/AP Photo
Bloomburg Businessweek by Graeme Wood
Private jail operators like the Corrections Corporation of America are making millions off the crackdown on illegal aliens
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The private prison system runs parallel to the U.S. prisons and currently accounts for nearly 10 percent of U.S. state and federal inmates, according to the Bureau of Justice Statistics. Those numbers rise and fall in response to specific policies, and CCA has been accused of lobbying for policies that would fill its cells—such as the increase in enforcement of regulations like the one that snagged Cardenas. Tougher policies have been good for CCA. Since the company started winning immigrant detention contracts in 2000, its stock has rebounded from about a dollar to $23.33, attracting investors such as William Ackman's Pershing Square Capital Management, which is now its largest shareholder.
CCA has current contracts with ICE and other federal clients, as well as 19 state prison systems. Its largest competitor, the Geo Group (GEO), is slightly smaller, and together they account for more than $3 billion in gross revenues annually. The next-largest player, MTC, is privately held and does not disclose numbers, but the industry as a whole grosses just under $5 billion per year.
In Houston, ICE is paying CCA to hold about 1,000 alleged illegal immigrants while they are processed for potential deportation. CCA manages them until the moment they leave U.S. soil. If they are Mexican, it puts them in white CCA buses with tinted windows and drives them on its daily run to the Mexican border. If they're from somewhere else, it drives them across the road to the airport, marches them to an airline counter, and watches them fly away.
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CCA's opponents, such as human rights and pro-union groups, say the firm is run by amoral penny-pinchers who are in a business best left to the state because of the perverse incentives prison companies have to lobby the government to adopt policies that will increase America's already high rate of detention. When every prisoner is a daily $100 bill, say these opponents, you'll do everything you can to get as many of them as you can.