Ear Hustle

Stocks For Private Prisons Sky Rocket After Trump Wins Presidential Election

Donald Trump hasn’t even been sworn into office yet, but the private prison business sector is already looking forward to his presidency.

On a morning when global and domestic financial markets plunged on news of Trump’s victory over Hillary Clinton, Corrections Corporations of America surged nearly 40% in anticipation of increased need for more prisons and corrections services.

photo credit: CCA Website Screenshot

photo credit: CCA Website Screenshot

Most private prison companies saw their stock prices plummet in August when President Barack Obama and the Department of Justice announced that the federal government would stop using private facilities. But with Trump set to take office on January, that plan may now be in jeopardy.

“The for-profit prison industry were likely to face negative headlines and persistent contract uncertainty under a Clinton White House, but we expect a Trump administration to be more supportive given its focus on immigration and crime,” Compass Point Capital Partners equity firm said in a note.

Hillary Clinton, who supported legislation by then President Bill Clinton to help grow America’s prison population, announced during the Democratic Primary that she would ban the use of private prisons if elected president while refusing to accept any more donations from the prison industry.

“I’m glad that we’re ending private prisons in the federal system,” she said during a live debate on CNN. “I want to see them ended in the state system. You shouldn’t have a profit motivation to fill prison cells with young Americans.”

Meanwhile, Donald Trump told Chris Matthews during a live town hall event that private prisons have failed to prove that they “work a lot better,” and that he thinks “we can do a lot of privatizations” when asked about his stance on prison reform.

With those statements, and a very vocal plan to incarcerate and deport as many undocumented immigrants as possible, it looks like the Trump plan to “make America great again” is going to start with adding to an already massive national prison system.

Source: African Globe

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