Private Prisons: Profit Over People
What is a private prison?
A private prison is operated by a private company, rather than by the state or federal government. These companies sign contracts with the government to house inmates, and the government pays them a fee. The primary goal of these companies is to make a profit, so they are incentivized to keep as many people incarcerated as possible, often by meeting "bed quotas" (a set number of beds that must be filled or they pay a fine).
In the U.S., over 1.2 million people are incarcerated, and two-thirds of them work in prisons for very low wages, between 13 to 52 cents per hour. The 13th Amendment, which prohibits slavery, allows prison labor, effectively re-enslaving incarcerated individuals, particularly impacting Black people since the Civil War era.
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After the Civil War
Most people think the 13th Amendment ended slavery, but there was a loophole that let it continue through the prison system. After the Civil War, the South solved its labor shortage by leasing out incarcerated people—arrests ramped up whenever cheap labor was needed, and even those found innocent were forced into the system if they couldn’t pay court fees. This impacted mostly Black men convicted of petty “crimes” like vagrancy or stealing food.
Did you know what vagrancy actually means? It’s essentially homelessness—but criminalized. The same thing is happening today. Cities across the U.S. are passing laws that make it illegal to sleep in public, camp in tents, or even sit on sidewalks. Meanwhile, wages haven’t kept up with inflation, and the cost of living is higher than ever. So people are being priced out of housing, then punished for having nowhere to go. The system might look different, but the cycle is the same—turning poverty into a crime instead of addressing its root causes.
States raked in cash by leasing prisoners out to farms, mines, factories, and railroads. Big companies like Tennessee Coal, Iron and Railroad Company (later bought by U.S. Steel) took full advantage, forcing them to work in brutal conditions with zero regard for their survival. They were crammed into makeshift shacks, denied basic necessities, and left to suffer through disease, abuse, and contaminated water.
This didn’t just exploit prisoners—it drove down wages, stole jobs from free workers, and laid the foundation for mass incarceration, especially in for-profit prisons. Labor movements fought back, like the Coal Creek War in the 1890s, but industrialists got rich off the system. A lot of America’s infrastructure—roads, railroads, and buildings—was built on the backs of this forced labor, and its impact is still felt today.
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Who is GEO Group?
One of the largest for-profit prisons.
After Donald Trump's win, GEO Group’s stock saw a major rise. Meaning, they knew their investment into DJT would pay off.
[Photo via: MarketWatch]
In fiscal year 2024, ICE awarded GEO Group $747.4 million in contracts, according to federal data.
ICE raids under this mass deportation plan are expected to boost GEO Group’s revenue by $400 million, as the company profits from the detention of immigrants.
In February, GEO Group became the first corporation to max out donations to Trump’s campaign, contributing $5,000 through its PAC and $500,000 through a subsidiary to a pro-Trump super PAC. The company also gave $15,000 to a Trump fundraising committee that helps cover his legal bills.
The short documentary Culpable (2011) exposes how corporations have long profited from immigrant detention and influence policies to increase incarceration. Companies like CCA (CoreCivic) have made millions from ICE contracts while spending heavily on lobbying. The film connects harsh sentencing laws, like Operation Streamline, to corporate interests in for-profit prisons. An AlterNet article further reveals how private prison companies secretly lobby against pro-immigrant laws to ensure a steady flow of detainees, manipulating legislators for profit.
These immigration policies are less about making the system efficient and more about detaining immigrants, which directly benefits private prison companies like GEO Group and CoreCivic. The mass deportation efforts and harsh detention policies ensure a steady flow of detainees, filling private prison beds and generating massive profits. Many of these detainees are used for forced labor, often earning pennies per hour while working in prison-run industries or for private corporations. This system financially incentivizes the criminalization of immigrants rather than creating real immigration reform.
It’s a heartbreaking reality. The scapegoating of immigrants distracts from the deeper systemic issues at play—corporate greed, policy failures, and a lack of investment in social infrastructure. Meanwhile, the government pours endless resources into conflicts abroad (wars) while failing to protect its own citizens from tragedies like mass shootings. The cycle of dehumanization isn’t just cruel; it’s calculated. It keeps people divided and focused on the wrong thing.
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Los Angeles Fires and Prison Labor
In California, around 950 inmates fight wildfires for as little as $10 a day (before it's taxed) through the Conservation (Fire) Camp Program. While the program allows inmates to shorten their sentences by working as firefighters—making up 30% of the state’s wildfire-fighting force—it’s highly controversial due to the low pay and dangerous conditions. In contrast, professional firefighters earn around $85,000 to $124,000 per year, and private firefighters can charge up to $2,000 an hour.
While some inmates appreciate the program for the better conditions and job training it provides, it's a system that exploits vulnerable people. Many see it as one of the best opportunities in prison, offering freedom, decent food, and career prospects after release. However, the real issue lies in the fact that this program exists to create a cheap, forced labor pool, rather than serving as a tool for rehabilitation.
Providing structure and jobs for inmates isn’t inherently bad, especially if it leads to career opportunities. However, it’s wrong to imprison people just to create a cheap workforce. No one should be treated as a labor commodity. "No one treated us like inmates; we were firefighters." But at what cost?
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COVID-19
During the pandemic, prison labor became even more exploitative and dangerous. Incarcerated people were forced to keep working under brutal conditions, threatened with solitary confinement or delayed parole if they refused. In at least 40 states, they had to produce masks, hand sanitizer, and other personal protective equipment while being denied access to it themselves. Others were made to handle hospital laundry, transport bodies, build coffins, and dig graves—while COVID tore through overcrowded prisons. Nearly a third of incarcerated people caught the virus, and over 3,000 died. Despite this, 16 states still refused to give them early vaccine access
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12 Major Corporations Benefiting from the Prison Industrial Complex
[According to the Left Business Observer, “the federal prison industry produces military helmets, war supplies and other equipment.."].
01. McDonald's
02. Wendy's
03. Wal-Mart
04. Starbucks
05. Sprint
06. Verizon
07. Victoria's Secret
08. Fidelity Investments
09. Kmart
10. JcPenny
11. American Airlines
12. Avis