Privatized Prisons used for U.S. low-cost labor

This video, featuring an interview with Prison Industry Investigative Consultant, Author, and VLTP Executive Director Bob Sloan, and an NCIA video which is posted at tells about how U.S. companies are using prison labor–in competition with private enterprise–to offer the lowest cost production.

Back in 1979 The Prison Industry Enhancement Certification Program eased restrictions on the use of prison labor by private companies.  It took out the loopholes and the provisions which were meant to prevent unfair competition, to the benefit of private corporations.  This was watched over by a private sector prison-industries-oversight-committee made up of shareholders appointed by the governor—and it dramatically expanded the situations in which prison labor could be used.

The result—to quote House member Bill Huizenga, a Michigan Republican – and a member of ALEC–who is the lead sponsor of proposed overhaul legislation “This is a threat to not just established industries; it’s a threat to emerging industries….“If China did this — having their prisoners work at subpar wages in prisons — we would be screaming bloody murder.”

The owners of privatized prisons are making a lot of money by manufacturing products in competition with private enterprise.  Who can compete with 23 cents/hour labor?  Not U.S. private enterprise, also often called “small businesses”, the job creators.

But like all businesses, the prisons are looking at new markets, the owners looking for new profit centers.  So what we’re seeing is an incredible rise in the use of prison labor, making everything from the electronic components in guided missiles that were used in Libya, to the breaded chicken patties that kids are eating at school, to call centers. There are over 100,000 prisoners employed, working for these private corporations.

To watch this video, please click here

This video was produced by RT and may be seen at their site at