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A partial answer to the problems of prison overcrowding and high costs may be the "privatization" of prisons. Costs and overcrowding problems are the driving force behind the privatization phenomenon. As a national average, it costs roughly $20,000 per year to keep an inmate in prison. There are approximately 650,000 inmates in state and local prisons. This costs taxpayers an estimated $18 billion each year. More than two thirds of the states are facing serious overcrowding problems, and many are operating at least 50 percent over capacity.
Cost comparisons between private and government operation of prisons show frequent cost savings under private management...
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