Do you, like me, wonder how it can be that a nation as prosperous as ours cannot ever seem to find the money to spend directly in our children’s public school classrooms? That instead of our children being supplied with everything they and their teachers need within those classrooms to provide them with the world-class public education we are clearly capable of delivering, we are all instead having bake sales and car washes, and selling tickets to parent-provided spaghetti dinners to come up with the meager funds just so that our children’s teachers can get by without having to spend their own incomes on their students? Does this rankle you at all?
If it does, prepare yourself for additional rankling, and allow me to introduce you to the kid who has moved to one of the front row seats in the class, the immigrant detention industry. This industry is being supplied with all the U.S. taxpayer-money it needs to support 32,000 detainee beds, up from 27,500 in the previous year, plus a healthy profit for those astute enough to get in on this government gravy train.
“Each year, 300,000 immigrants are arrested in raids and along the border. What comes next is detention.”
According to Corrections Corporation of America (CCA), our nation’s largest prison provider, whose motto is “Prison Privatization at its Best”:
We are here to take care of the product that they deliver to us.
You simply cannot make this stuff up.
The business of immigrant detentions is enjoying record profits. Some notable quotes by CCA’s President and CEO John Ferguson:
… [the national immigration/customs budget is] quite above where the President’s original budget was, so we’re pleased to see that the government is funding the adequate needs for immigration/customs enforcement.
We’ve never seen the wind at our back like it is today. (spoken at a May 2006 investor conference after discussing $1.3 billion in revenue)
What I am most encouraged about is everything we are hearing says 33,000 [detention beds] is still not enough.
I’m sure CCA’s investors are happy with how our federal tax dollars are benefiting them. The value of $100 worth of shareholders’ investment in CCA in 2002 has grown to almost $600 today.
You might be interested to learn that the private equity and celebrated buyout firm, The Blackstone Group, is behind CCA’s financial success, having secured additional funding for growth through loans from Lehman Brothers and Bank of America. Blackstone is referred to as the 21st century’s Enron; its co-founder and chairman of the board, Stephen Schwarzman, received $350.7 million of compensation in 2007, making him one of the highest paid executives on Wall Street.
So what’s driving demand for this industry? Simply put, changes to immigration policy. You can safely bet all the gasoline you have to pump into your family car this year that the folks who run the companies that are profiting off of immigrant detention are spending whatever part of their record profits they have to on lobbying firms that write the immigration legislation that the lobbying firms then hand over to our legislators to co-sponsor who then tell us, their constituents and the schmucks who voted for them, that there’s no money to support our public schools, while there’s plenty of money to “keep us safe.” Yeah, right. And the higher the demand for immigrant detention beds, the more these private contractors can charge the U.S. taxpayer, even as they provide fewer detainee services.
Each new government program to increase immigration enforcement has been a business opportunity for CCA and companies like it.
Keep in mind that the immigrant detention industry lobbyists do not just have the backing of companies like CCA; lobbyists working for Blackstone and other hugely powerful financial firms undoubtedly provide the bulk of the “campaign contributions” devoted to rewriting “our” immigration legislation, as well as grease the tax loopholes that prevent these investment firms from having to contribute to the very tax base that pays for the programs based on this legislation.
One example of how these immigrant detention industry lobbyists rewrote immigration policy to benefit their industry was by convincing Congress to end the “catch and release” program. Many immigration experts feel that this was a big mistake. It created an urgent and immediate need for thousands more beds, the number of contracted beds being how the industry increases its income stream.
An example of an upcoming immigration policy that CCA anticipates will provide even more record profits is Operation Streamline, a zero tolerance program for immigrants crossing the border. Under Operation Steamline, every single human body that’s apprehended at the border will be charged with “entry without inspection,” a misdemeanor that will provide CCA with 15 to 30 days of detention income per body. CCA’s business plan relies on getting as many of these “entry without inspection” bodies charged with a felony that would result in six months to two years of additional detention income per body. As any enterprising person can easily see, it will be more profitable for CCA to detain these “entry without inspection” bodies for the maximum number of days allowable before releasing them or charging them with a felony. I’m sure this is just one of a myriad number of ways for CCA to further increase its revenue stream, its profits, and its investor income. This, folks, is a very sick system.
Immigration and Customs Enforcement (ICE) has a budget that has grown from $0.5 billion in 2005 to $1.6 billion today, only two years later. It has grown nationally by receiving government contracts, contracts that paid for less than 20,000 detention beds in 2003, but that currently pay for 33,000 beds.
What exactly do these government contracts provide?
Hoo-boy! That is one swell gravy train ride. This industry is operating virtually risk-free, hardly in a manner consistent with a free-market. The only risk to their continued profit growth is election reform at the level where lobbyists are no longer allowed to bribe our legislative representatives.
Imagine if all parents of public school children could say to each other: “We’re pleased to see that the government is funding the adequate needs for our world-class public school system.”
Or if Iraq war vets could say to each other: “We’re pleased to see that the government is funding the adequate needs for our returning war vets.”
But we can’t say these things. Because our government is serving the needs of an ideologically-driven minority demographic that plays up and preys on a collective fear that the bogeyman is right outside our borders and will kill us all in the middle of the night if we don’t make a strong financial commitment to the huge war profiteering industry, which now includes the private paramilitary industry, the international and domestic surveillance industry, and the immigrant detention industry. We can’t provide our own children with the kind of public school system that would result in a citizenry being able to see through this propaganda, and we can’t take care of our citizen soldiers, through adequate VA funding and a GI bill, because we must commit all of our tax money to for-profit businesses rooted in “national security.”
“… CCA’s confidence in future demand is so great, it’s not worried about an abundance of unused beds and lost profits. The company is already slated to develop 10,700 beds by 2009 in order to meet anticipated demand from federal and state customers. That’s good news for [CCA’s CEO] Ferguson, who in 2007 took home close to $3 million in executive compensation.”
When we consider these taxpayer expenditures in context with our lack of expenditures in areas such as education, health care, actual port and border security, and environmentally sustainable energy, it doesn’t take too much imagination to see that, not only are we making enemies out of friends with our support for the immigration detention industry, we are running our economic ship-of-state straight into a tidal wave, while neglecting those issues of truly critical importance to any great society’s success.
Thanks to DREAMActivist for the inspiration! — Linda
Cliff Schecter is a consultant and pundit whose acquaintance I made last year when he moved to Ohio and was getting to know Ohio bloggers. He became somewhat of an Internet star when his videos smacking down GOP hacks on MSNBC went viral–his combative, take-no-prisoners style was a breath of fresh air. I got in touch with Cliff when I found out he was writing a book on John McCain. (I was angling for a review copy.)