Federal Inmates Hurting Small Business and Somehow Still Stimulating Economy - Forbes

When the Bureau of Prisons first started Federal Prison Industries (aka UNICOR) it was intended to provide skills for inmates so that upon release they would have a skill that would allow them to become a functioning part of society. It also kept them busy instead of planning escapes, assaulting guards or assaulting each other. UNICOR employees inmates involved in producing a wide range of products from the the manufacturing of government uniforms, to making furniture, to recycling. Started in June 1934, it seemed like a great idea when the number of federal inmates numbered below 15,000, but it is a different case with an inmate population today of over 215,000.

Congressmen and Senators are being asked to step in to stop awarding government contracts to UNICOR that would otherwise go to small businesses in similar industries. In Kentucky, a small clothing company was at risk of losing its contract with the Air Force but thanks to Senator Mitch McConnell, who intervened on behalf of the company, UNICOR backed off. Jobs saved. Now there are more and more private companies competing against a growing prison industry causing many to question whether giving a job to an inmate is better than providing a job to law abiding, tax paying citizens. It is a difficult question because the benefits of providing a job to a citizen in good standing NOW are so much better, and more tangible, than looking at the long term benefits to society of helping an inmate turn his/her life around to become better citizens in the future. But there is another side to this story worth considering.

It should be noted, that prisoners currently provide a lot of jobs to citizens just by being incarcerated. One just has to look at the joy of the people of Berlin, NH who are hosting job fairs to fill over 300 positions at the new federal prison that recently opened. The prison will have phones for inmates to call home and email accounts to write loved ones …. all services paid to private businesses by inmates. Inmates can by digital music and books, also provided by private companies. Then there is the commissary, stocked full of food, clothes, toiletries and candy, which allow inmates to spend up to $300/month (215,000 inmates x $300 = $64.5 million/month). Then there are hotels and restaurants in the area of the prisons that house and feed families every week that come to visit. Prisons also need maintenance, which is provided by outside contractors to build on to facilities or repair broken facilities (wouldn’t want a lot of inmates running around with hammers). Of course, there is also healthcare for inmates who are routinely cared for in community hospitals. There are prison cars, trucks, lawn equipment, chemicals for cleaning, books, etc. All of this means more jobs for the community.

Another economic plus for local communities that house prisons is that the inmates are counted as “citizens” for the purpose of the U.S. Census, which is used to calculate federal funding for roads, schools, infrastructure and, strangely enough, to determine congressional districts. That means more big bucks flowing as a result of having a prison in town.

It is difficult to support an argument for an inmate taking a job from a hard working citizen. However, it is disingenuous not to also see the economic benefit of the huge industry that prisons have become in our country. With a federal prison population forecast of 6,000-8,000 more inmates each year into the foreseeable future, there will be even more jobs to come.

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