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Private Prison Stocks Drop as the Reality of Bidens Win Sinks In
But quitting for-profit detention wont be so easy.
Madison Pauley
Private prison companies have taken a financial hit in the past week as President-elect Joe Bidens win became apparent. Stock prices for the countrys two largest prison companies, the GEO Group and CoreCivic, have fallen 14 percent and 19 percent respectively since Election Day.
Bidens campaign platform, like Hillary Clintons in 2016, promised that he would end the federal governments use of private prisons. Thats a serious threat to both GEO and CoreCivic, which depend on federal contracts with the Bureau of Prisons (BOP), Immigrations and Customs Enforcement (ICE), and the US Marshals Service for more than 50 percent of their revenue, according to their most recent annual reports.
Private prison investors are adept at reading the political winds, and their consensus is that a Democratic president is bad news. In the summer of 2016, the Obama administrations decision to end BOP contracts sent prison stocks plummeting, and they sagged for months as Clinton appeared to be the likely election winner. Donald Trumps victory that November caused their share prices to soar. The industry benefited as the new administration detained tens of thousands of immigrants and imposed hardline immigration policies such as family separation that caused Democrats to turn against both ICE and the prison industry. (Private prisons did not hold children taken from their families, but they did hold their parents, as well as families detained together.)
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https://www.motherjones.com/crime-justice/2020/11/private-prison-biden-stocks/
Cirque du So-What
(25,917 posts)Newest Reality
(12,712 posts)WhiskeyGrinder
(22,311 posts)don't like to talk about it.
BComplex
(8,029 posts)The "privatization" of government is how the republicans have gotten all that money all these years..the companies BUY their congresscritters when they do the company's bidding. This shit has to stop. Everyone knows that 99.9% of all government services are cheaper when done by government workers as opposed to paying HUGE profits to contractors, who then pay subcontractors down the line. Trillions of dollars a year go to "privatized" government contracts that SHOULD be done by full time, well paid, professional government employees.