Many people are surprised to learn that there are private prisons. The two largest private prisons being the Corrections Corporation of America and the GEO Group. Online Paralegal Programs has created an infographic explaining just how these prison companies work, and what their profits go toward.
How do the largest private prison providers make their money, and what agreements are in place to protect their profits? As stated in the infographic, when a prison company approaches a state or a city to either build or take over a facility, they are often guaranteed certain occupancy rates.
In other words, law enforcement is expected to provide prisoners (arrest and convict people of crimes) to avoid getting hit with fines, so the incentive to keep people in jail rather than out of jail is pretty clear.
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