James Surowiecki writes: Going into Election Day, few industries seemed in worse shape than America’s private prisons. Prison populations, which had been rising for decades, were falling. In 2014, Corrections Corporation of America, the biggest private-prison company in the U.S., lost its contract to run Idaho’s largest prison, after lawsuits relating to understaffing and violence that had earned the place the nickname Gladiator School. There were press exposés of shocking conditions in the industry and signs of a policy shift toward it. In April, Hillary Clinton said, “We should end private prisons.” In August, the Justice Department said that private federal prisons were less safe and less secure than government-run ones. The same month, the department announced that it would phase out the use of private prisons at the federal level. Although most of the private-prison industry operates on the state level (immigrant-detention centers are its other big business), the news sent C.C.A.’s stock down by thirty-five per cent.
Donald Trump’s victory changed all that: within days, C.C.A.’s stock had jumped forty-seven per cent. His faith in privatization is no secret, and prison companies aren’t the only ones rubbing their hands. The stock price of for-profit schools has also rocketed. Still, the outlook for private prisons is particularly rosy, because many Trump policies work to their benefit. The Justice Department’s plan to phase out private prisons will likely be scrapped, and a growing bipartisan movement for prison and sentencing reform is about to run up against a President who campaigned as a defender of “law and order.” Above all, Trump’s hard-line position on immigration seems certain to fill detention centers, one of the biggest money spinners for private-prison operators. [Continue reading…]