Since the mid-1980s, private companies have contracted with states and branches of the federal government to assume certain prison operations. The argument behind these contracts has been that private companies — which are not beholden to things like pension arrangements with correctional officer’s unions — can cut prison spending in ways that governments can not.
For the most part, this argument was theoretical — an idea never definitively proven by any significant academic studies (though some have tried to do so). But then, in April 2013, came a study out of Temple University in Philadelphia. This study found that private prison companies could help governments cut costs from between 12.46 percent and 58.61 percent. It looked like a...
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