The US has the dubious difference of having more people incarcerated than any other country on the [] planet

Yesterday, President Biden passed an executive order that many refer to as a “ban” on private prisons. The truth is more complicated and generally reflects the variety of ties between the US government and the private prison sector

The past week has been an interesting test of the efficient market hypothesis Do investors have the perfect information about the potential impact of the Biden policy to accurately evaluate the stocks of publicly traded private prison companies? The devil is in the details of what this executive order actually does and doesn’t, and so it ultimately has an impact on private prison societies, their shareholders, and most importantly, the over two million people in US prisons and detention centers and privately across America / p>

Investors clearly weren’t happy with yesterday’s news and the potential impact on the future of the two largest private prison companies, GEO Group
GEO
and CoreCivic In general, investors have been dissatisfied since inauguration as both President Biden and Vice President Harris held public positions on private prisons during their campaigns. The Motley Fool put it without a doubt yesterday: “Expect this company’s revenues to be in the steadily draining next four years, if not longer, GEO Group’s stock fell 18% in the five days leading up to the order and 55% last year CoreCivic saw a 14% decrease in five days and a decrease of last year 61%

Those familiar with my job as an impact investor know that I’m not a fan of the private prison industry or any industry that makes money off of suffering people, but I’m primarily a huge fan of the truth (and ) Recently won the dismissal of a lawsuit that proves exactly that) Interestingly, I think the markets are rightly not overreacting here, which is precisely why many lawyers and families with relatives who are in private prisons and detention centers for immigrants celebrate this “ban “Not quite yet – because it doesn’t go far enough

The core of the decision consists of one sentence: “The Attorney General may not extend the contracts of the Ministry of Justice with privately operated prisons in accordance with the applicable law. This declaration has the power to up to 23% or 22% of the income of the GEO Group or Trimming CoreCivic by cutting off contacts with the Bureau of Prisons and Marshals Service, however, proponents are still focused on the other roughly 80% and the general need to simply lock fewer people in public or private facilities

What the arrangement did not affect – but may be clarified in further statements – are two of the main areas that private prison companies have diversified into, as the writing on the walls of the DOJ is two other major sources of government contracts for these companies are immigrant detention and post-detention “services” such as temporary shelters and electronic surveillance

Over the course of the Trump administration, ICE has significantly increased the number of immigrants incarcerated and the system by more than 17000 beds were expanded, with over 80% of immigrants in prison being housed in privately run facilities

Nancy Treviño of Presenteorg said, “The inhumane and cruel conditions our immigrant families face in for-profit prisons have resulted in torture, abuse and death. Private prisons have always exploited and used the worst of the entire carcinogenic system, and we will Continuing to urge leaders to end all contracts with private prisons, including DHS and ICE, Because of grassroots organization and the power of the social movements, we were able to force some of the largest banks in the world to stop funding the private prison industry – and elected Leaders Listen Hundreds of thousands of people have taken steps to secure this first victory for us, and we will not stop until this torture machine is abolished “

In addition, physical prison facilities are not the only way to get in touch with the criminal justice system and immigrant detention systems. Interim facilities, anklets, and other post-incarceration services offer great revenue opportunities. Again, these are from both proponents and those who use such “services.” get “under attack”

William Palmer II spent six months at the GEO Re-Entry Services facility in San Francisco after leaving the state prison in March 2019 “The GEO house halfway felt like moving from the state prison to a local prison. I was denied permission To see my own family care more about making money than helping you transition into society ”

Udi Ofer, ACLU’s Assistant National Political Director, commented, “While this executive order is important, it is far from what the nation needs to end mass imprisonment and racism in the criminal justice system. The United States is incarcerating more people than any Another nation in the world And the biggest culprit in the mass detention crisis is government policy and state actors. We welcome it when President Biden reissues and expands President Obama’s 2016 order not to extend contracts with private prisons, but we need bolder measures that drastically reduce the number of people detained, e.g. B. use the power of grace to commute thousands of sentences, or direct federal prosecutors to end the war on drugs at their discretion. “In addition, many measures such as condemning reforms and alternatives to incarceration as solutions to the” pipeline problem ” called for filling America’s prisons and prisons

In public, private prison societies have made statements implying a degree of reluctance – or poor predictability – of changes in both public sentiment and order towards private prisons

David Garfinkle, executive vice president and chief financial officer, said in CoreCivic’s earnings report for the third quarter on Jan. November: “Only if Joe Biden becomes the next president will I think there is much to be done. Surely COVID-19 will be mission number one to get this under control. But when you think of all the other initiatives on his plate.” standing, healthcare, tax reform, climate change, trade negotiations, it will probably be a while before you would expect the focus to be on private prisons.It’s just such a complex area to solve because we have such an important government service there Offer that I just can’t believe it That would be one you want to tackle right now ”

At the same time, they have sought to diversify their services more to make up for lost revenue Just like the markets, private prison societies have been expecting this day

Steve Owen, Vice President of Communications at CoreCivic, responded to the executive order: “The BOP has seen a steady decline in occupant populations over the past few years So today’s announcement came as no surprise to the capacity given the agency’s lesser need for capacity.We have been following this trend closely and we have worked hard to diversify the solutions we offer.We take great pride in the important services we have provided for more than Spending two decades on the BOP, along with our other federal, state and local partners in the 21 states we currently operate in. Our partners’ flexibility in dealing with ups and downs in their populations is one of the most important Ways We Create Value ”

A spokesman for GEO Group said: “For more than three decades, our company has been providing high quality services through a public-private partnership with the Federal Prison Office. During this period, our facilities, which are newer and more modern than the generally older of Government-run prisons, the BOP helped cope with the significant overcrowding problems of the federal prison system. Our facilities almost exclusively house criminal foreigners convicted of federal crimes, so government-run facilities can cater for US Citizens without significant overcrowding problems ”

It’s a small but important detail – yes, there are many non-citizens in facilities that have been contracted by the Federal Bureau of Prisons, but that doesn’t mean U.S. citizens aren’t deeply concerned about any of these -A citizen is the father of Antonio Medina, a US. Marine, held at the GEO Group’s Moshannon Valley Correctional Facility in Pennsylvania.Although the Moshannon Valley contract with the Federal Bureau of Prisons was technically dated Jan. March expires, it is still unclear what this will mean for its residents

“My father was told to pack his bags but he doesn’t know where he is going and the families who already have loved ones are not being transferred,” he said. Ideally, Medina Sr.Like many of those currently incarcerated and fearful of COVID, they would be granted a compassionate release.His story illustrates America’s longer-term challenge – which is not just about private vs. public prisons, but simply fewer prisons

The executive itself says it well: “There is broad consensus that our current system of mass incarceration imposes significant costs and hardships on our societies and communities and does not make us safer.” Hopefully the treatment of the role of private prisons is just that first step by this government towards a much broader approach”

For full details of my work, please click here. This post does not constitute investment, tax, or legal advice, and the author is not responsible for any action taken based on the information provided herein. All views expressed by Antonio Medina are his own and do not reflect the opinion of the US Marine Corps

CoreCivic filed a lawsuit against writer Morgan Simon and her firm Candide Group in March 2020, alleging that some of their previous statements about Forbescom regarding their involvement in family imprisonment and lobbying are “defamatory” while in November 2020 the If the case was dismissed, CoreCivic appealed, so the lawsuit is still pending

I am an investor and activist who has bridged finance and social justice for nearly twenty years. During that time, I have influenced over $ 150 billion

I am an investor and activist who has built bridges between finance and social justice for nearly twenty years. In that time, I have influenced over $ 150 billion and helped thousands of people learn how their money is based on their values My book, Real Impact: The New Economics of Social Change, provides guidance on creating real systemic change in the world and has been featured everywhere from Harvard Business School to the United Nations.I am currently a founding partner of the Candide Group, a registered investment advisor in Oakland, CA I am also an Associate Professor on the Middlebury College Graduate Program, an avid dancer, and a Swarthmore graduate Find out more and contact me at wwwMorgansimoncom or add me on social media (@ morgansimon1)

Private prisons

World News – USA – What does Biden’s “ban” on private prisons really mean?

Source: https://www.forbes.com/sites/morgansimon/2021/01/27/what-does-bidens-ban-on-private-prisons-really-mean/