The Real Cost of Prisons Weblog

The result: “We find no evidence that prison expansion has stimulated economic growth. In fact, we provide evidence that prison construction has impeded economic growth in rural counties that have been growing at a slow pace.”
Hooks said he and the co-authors of the study of the prison industry incorporated “a whole host of control variables” in their study of federal data. The co-authors included Clayton Mosher and Thomas Totolo, both of Washington State University, and Linda Lobao, of Ohio State University.
The paper grew from conversations that Hooks, Mosher, a criminologist, and Lobao, a sociologist of rural society, had about the increase in the number of prisons in rural areas in the 1980s and 1990s. Hooks speciality had been a study of military facilities, based on masses of county economic statistics from federal archives. He said the three of them were talking about the rise in the number of rural prisons and decided to study the economic effects.
This study was "self funded," Hooks said. Hooks' current study comparing the economic influences of prisons visa vis post secondary institutions of learning, he is doing at the invitation of a Soros Justice Fellowship. The present study includes a facet to share his knowledge of prison economic influence with communities dealing with prospective prison construction. Hooks said he has been invited to speak with two groups: Berlin and a community in Idaho.
Hooks and his colleagues in the study found that when they included urban counties, they found no evidence that prisons influence employment growth in these counties.
“That’s not surprising when you think of opening a prison in Manhattan,” he said, “like Manhattan would notice.”
So the study group focused on rural counties, distinguishing between the 25 percent with lower job growth and the 75 percent with higher job growth.
“In the upper 75 percentile, we found not much of anything significant statistically. We found that in slow growing counties with established prisons, the prisons had no significant impact. The impact had been absorbed. But,” he said, “we found that new prisons had a sharply negative influence on private employment. The impact on public employment was not statistically significant but there was a strongly negative impact on the private sector which resulted in overall employment losses.”
“This was the first comprehensive study (of prisons’ economic effect) and the result were a surprise,” Hood said, later noting that he and his colleagues expected to confirm conventional wisdom that prisons brought economic benefits.
“We had bought the hype,” he said.
Hooks said there is widespread belief that prisons add jobs to a local area. Typically, he said, a prison is a big, new facility. People who work there, didn’t before, obviously. You added something to the employment base. Construction brings money to the area, he said. It costs so many million to build a new facility. Prisons are thought to be recession proof because the jobs are in the public sector. They are thought not to be sensitive to recession.
The U.S. started building prisons at a rapid clip in the 1980s, he said. Early studies on the effects of prisons concentrated on what happens to towns with prisons and the studies indicated that prisons do more good than harm.
But these studies were suspect on two grounds, he said. First, they relied on case studies. In other words, they looked at one town, rather than being comprehensive studies.
Secondly, he said, if you go to a community with a prison, the people who benefited are there to talk to you. The people who didn’t benefit, have moved away. You can’t talk to them. You miss part of the selection. That is called sample selection bias, he said.
As analogy he pointed out that “people don’t go to the gaming floor in Las Vegas and talk to the people about how often they win or lose because the losers went home. One way or another, the people who are losing, aren’t there,” he said.
“These big projects are very attractive to people in the public sector who are trying to help their communities,” he said, “the big sports stadium, the military base. But the evidence that they help is not encouraging.”
Prisons seem like a panacea, he said, but things with larger budgets don’t automatically have a big impact. Noting subsequent studies that support the findings Hook and his colleagues discovered in 2004, he said, “that prisons aren’t a quick fix for a place that is struggling.”
“It’s counterintuitive,” he said. “County A has a prison with 250 jobs and County B has none. Why would the average places with new prisons end up with fewer jobs not more?”
Typically, he said, the skilled, high paying positions are held by newcomers who often live away from the prison town. They like restaurants, shopping, often they commute. When people with those skills marry, their partner is often highly educated, too. Dual career couples gravitate toward bigger communities.
“Rarely are current residents hired for the better paying jobs. In many instances, those people don’t live in town,” he said.
Secondly, he pointed out that the kind of job skills that current residents of a rural town have are limited.
“Being a prison guard means you can get a job as a prison guard. It’s difficult to generalize that job,” he said.
He also pointed out that prisoners are expected to work, although that varies by jurisdiction. When they do, their work competes with the private sector. As example, he told the story of the mayor of a prison town interviewed in front of city hall by a television reporter, while behind them, “a guy in an orange jumpsuit was weeding city hall.”
Hooks guessed that landscaping is not a job people tend to remember, but it is often the first rung on the job ladder for someone without skills.
“Someone without job skills, the mom and pop businesses, can’t compete with free labor,” he pointed out, while remarking that from the prison’s point of view, the work makes sense since it helps the prisoner to be out working, not locked in a cell.
Hooks was offered an example in the audience.
“I was laid off in the southern part of the state,” said a man in the audience. “I found out that there were jobs available in the industrial park (here). When I got there for the interview, I found prisoners were already work at the job at less money than me, as machine operators.”
“I don’t know what the fine print is at this prison,” Hooks said. “I think these are questions you will have to answer yourselves.”
Hooks notes that when people go to Atlantic City to gamble, not every one loses “or you wouldn’t play. It’s not like you smoke a cigarette and fall over dead. (Cigarette warnings) are a probability statement. I encourage you to think about the probability statements (in relation to the prison study),” he said.
“The prison will not help the tax basis,” one listener said. “The poor people will have to absorb the impact of the services that will continue (to be borne) by a population of less than 10,000,” adding, “look at the qualifications and the foundation of our labor pool. Yes, jobs are displaced in the local community, but my guess is that ten people in the town qualify for prison jobs. A prison is not diversity. It’s insanity. The local officials are not here (at this meeting) and they have the gall to say they represent the people,” he said.
Rep. Bernard Buzzell, of Berlin, and Bruce Lary, of Gorham were the only elected officials to attend the meeting.
“I’d like to bring out a question in a different vein,” said Robert Theriault, a former city councilor of Berlin. “I’ve never seen anything about the prison being economical for the taxpayers in this country. Is it economical to put a prison up here. We have no airport to bring in lawyers to protect the human animals and give ‘em their rights. You’re going to drive them from Manchester at $150 an hour to represent an animal in prison here. We have no roads to transport prisoners east and west. It takes four times longer to go to Burlington than to cross the whole state of New York.
“A lot of economic factors don’t make sense,” he continued. “We have no income tax or sales tax. We get no taxes from that prison. Where is the money going to come from to pay for the schools? . . . If we locate industry here, they want to know how much it costs to bring raw materials in here. (Have the prison officials done that?) What is the cost of labor? It would seem to me that if you put all your prisons together in Virginia (they have six already) and they all use the same services, you wouldn't have to travel all over the country to get the services and economies in volume. That’s common sense, in my opinion.
“In all the studies that have been made,” he said, “they don’t include the potential of locating a prison here based on how much it’s going to cost. What about the security? If you have a riot, you need 400 to 500 police. What are you going to do? You’ll have to wait till they travel 100 miles up here and pay their travel expenses and you have to spend time on the roads getting people to support the prison?
“One of these days they’re going to say it doesn’t make sense to have a prison up there and let’s close it down and by then Berlin will be closed down anyway,” Theriault said.
“They made a study about the water filtering system,” he added “They said we would have a growth in population. They put a big $10 million water works across the river and it’s closed. The pipes were leaking . We have the most expensive water in this country. We have the most expensive electricity in the U.S. Where do we stand on the economics of running a prison on behalf of the income taxpayers of this country?”
Hooks acknowledged that he could not comment on the local situation. In Texas, he said, some communities have been persuaded that prisons are such a good thing. that they have floated bonds to build the roads, supply the electricity and sewage to attract prisons. But the community is then impacted negatively because the towns don’t have the wherewithal to take care of their own.
“You know in your community what activities are prison compatible and what are not. That is yours to think about,” he said.
Dawn Tupick has already done a lot of thinking about the prison and she is vehemently not in favor.
“Berlin is only 60 miles square,” she said. “We already have one prison from Success to Mt. Carberry they want to put in another prison and expand the sanitary landfill another 80 acres. This is a big community of (prisoners) to have in a small area like that.”
She pointed out the high cost of gas and asked whether federal studies had been adjusted to take into account locating “in such an isolated area.”
“I am concerned about the wider impact on the community,” another contributed. “The government had a clandestine meeting proposing to take twenty properties in MIlan by eminent domain. It looks like there will be a prisoner shuttle through the air and twenty homes will be gone.”
Tupick added, “We are invited in a new population of strangers. This is not an urban area. Berlin is one of the most beautiful towns with incredible potential. I have to say a prison economy sure is not going to be an attraction. And the state prison is putting in an addition of 500 beds with more lighting. Where does this stop?”
“And one more thing,” she said, “talking about the impact on the land. There are many here from Success who are fighting for their very homes and they weren’t even allowed to vote. The feds moved in and took those people over and this is not democracy.”
Hooks reiterated that he didn’t have the answers for the local situation, but he said his most recent research compares the economic impact of prisons and of post secondary schools. He said he still had not completed the study but findings suggest that comparing the two populations, there are fewer multiplier effects (introducing wealth into the community) with a prison population. He also said that typical university or community colleges were carefully monitored not to compete with local businesses.
Schools also invest in human capital, he noted, adding that the experience of military base closings surprised social scientists because the communities were not impacted as negatively as expected.
“We were surprised to find that military bases weren’t as important as the congressional delegations thought,” he said.
Bruce Lary wanted to know if Hooks had started his study with an end in view and twisted the statistics to match.
Hooks pointed out that the study was subjected to peer review, which meant that others scrutinized the data and analysis and concluded no bias.
“It was hard to get published because the conclusion flew in the face of what was considered common knowledge at the time. Now the national studies provide no opposing evidence,” he said.
“(A desire for clarity) is why you are here,” said a member of the audience. “It is necessary to have this kind of information so one can make an intelligent decision. I guess that most of the politicians do not have the facts. This is a huge concern but not enough to draw enough people here. We are not against the city. We want as much good for the city as anyone does. But we re concerned that they are being blind sided. The facts are being ignored. Self interest seems to be the driving force.”
Hooks noted that there are studies on one-company towns. The literature is not promising, he said. As reliance grows on the one industry, it’s hard for alternatives to emerge. Labor force skills are concentrated in one sector. Complementary businesses don’t exist. A prison town (as opposed to a town with a prison) is very unattractive for tourism and related industries just as being someone working with wood rather than a mill town with an odor make a difference.
“You can bet your bottom dollar the tourists won’t go up the loop to see moose,” commented another member of the audience.
“In some instances, the dominant industry gains control of local government. Other voices and citizens are shut out . You can imagine that the one industry will be catered to, taken care of by local officials. In some rural communities, the dominance has undermined democracy and inhibited public participation," he said.
“Berlin has been like this for years. We need to take ownership. As for tourism, it’s difficult for people to get up here. We have no road access up here. It’s not like Conway with regular road access,” said another.
“You’re filling 500 rooms in Gorham every night,” remarked Michelle Lutz, of Gorham.
As generalized conversations began to break out in the room, Nathan Morin brought the group back to the point of the meeting.
Buzzell, who had mentioned the problem of roads, reiterated his point, and a questioner asked, “Are you saying you are justifying the building of a prison because we are in such a cul de sac?
Buzzell responded he was at the meeting to hear what constituents had to say.
A man in the audience pointed out that many in Berlin were comparing the state and federal prisons, but there is no comparison, he said. “The federal prison will be three times the size and have much more impact. The state prison hasn’t been bad, but I am opposed to the federal prison. The state has not delivered on the promises the city officials made when it was built. Back then they were promising lower taxes, that this wold be the best thing to hit the area, so how can we define the two. In my opinion the federal prison will be worse and bring more hardship to the area than the state prison.”
Hooks couldn’t offer special knowledge, but surmised in terms of whether jobs grow or shrink, the probabilities between state and federal prisons are about the same.
As for roads, he noted that roads are built to places with vibrant economies.
The discussion began to wander again. A speaker noted that Berlin would become known as Prisontown, New Hampshire. Another feared negative impact on property values.
Another called for more action to oppose the prison. “It’s not a done deal,” he said.
Another remarked, “I came here to find out what kind of an impact it would have. It will affect taxes, the need for more schools, the waste treatment plant is not big enough for Berlin. What’s it going to do with two prisons.
“Nobody seems to be looking t that. . . . ," he continued. "The one good thing the EIS will bring about, people are talking about starting guards needing four year degrees. There are no four year colleges in Berlin. Where are these guards coming from? Alabama?”
Another pointed out that employment promises for the state prison have not been fulfilled, that it took the state prison two years to achieve full employment.
“What are we going to do with a federal prison,” asked another, “a whole new population. Look at Main Street. This is not for the people. The mill site is on the superfiund. It would be great to have the site cleaned up and to hire the mill guys to do the work. I was in the Pacific Northwest when they shut down the fishing industry, (yet the Northwest has recovered). There is always an alternative. This mill could be retooled to recycle newsprint, but these guys don’t want to think. They say they represent the people but there is not one benefit for the people who pay the highest taxes in the state. With fuel prices going up, just to eat and keep warm will be difficult. But not one tax dollar will be contributed (by the federal prison) to benefit these people. The hunting population just lost their prime hunting area. If there was a benefit, I would be for it, but there is no employment benefit, no tax relief.
"The one hope is if we could get a regional ballot. I was at the first vote and they voted it down. I don’t understand what happened," said another.
“What can we do to turn this around?” asked Kurt Masters. “We have Mr. Nardi here from Louis Berger (consultants who produced the Environmental Impact Statements for the Bureau of Prisons). “How come you are not using peer review studies?” Masters asked. "Why use studies commissioned by AVER that have been found to be inaccurate, sloppy, and poorly put together? What can we do to turn things around?”
Mr. Nardi remarked that the study was commissioned by AVER and Louis Berger had not contacted the writer to ask questions.
Berlin City Planner Pam Laflamme responded that she was there to listen and learn.
Masters pressed, asking why the Bureau of Prisons quoted the AVER study if it had not been peer reviewed.
Nardi replied that he was there as a private citizen, always interested in the opinions of the people. He had come to listen to Dr. Hooks presentation. “I am eager to learn,” he said.
Mike Eastman pointed out that the data in the EIS about the people imprisoned in a medium security prison was from 2001.
“I think a whole lot has changed since 2001 in this country,” he said, also pointing out that federal prisoners incarcerated for violent crimes are released directly into the community, contrary to what the Berlin population has been told. Further, he pointed out, new gangs have sprung up in federal prisons such as the notorious MS-13, a violent gang whose reach now extended across the United States and into New England.
“They are in Massachusetts, along with a slew of other people that you are trading up for here and allowing into the community. It's gangland style inner city stuff. The feds can’t stop it. There are six other countries that can’t stop it. You need to be thinking about this.”
“I have friends who work in the prison system,” said Marc MacDonald, of Randolph. “They are laying off at their facilities. They are closing wings. They are in the submarine rotation, which means one guy sleeps while the others of a three person team work. Also, there is a huge initiative in the federal system to rethink the incarceration of drug people. My friend works in a women’s prison. They (the prisoners) are mules (drug carriers) for the most part. Officials are looking at a way to treat this another way.
"And, as you know, it’s last in, first out," he added. "They build this facility and there’s a layoff and shutdown because of the economy of transporting people here, we have government broken down. If this were a corporation, these guys would be out. I guarantee you this will be a closed facility just like the other 58 (Ray Hopkins) mentioned. It doesn't make sense. What is the liability here if they open this up and then down size? We will suffer more than you can imagine.”
Another in the audience suggested writing directly to Bush. “You’re wasting your time with Gregg. Send your objection to Bush directly and you may send a copy to Gregg who’s against the people of New Hampshire.”
MacDonald wasn’t finished. “We have a crack cocaine epidemic here already that is being ignored,” he said. “It is destroying families in this city. In the old days it was pot and beer. Those things are manageable. Crack cocaine is off the map. Its a huge problem. The prison would be the other shoe for the other foot. I used to play space ball in this field before this school (NHCTC) was built, unlike certain city officials from elsewhere. I have seen what has happened to this town and it is so disturbing to think the some would exacerbate the problems. I recall our Main Street, the way it used to be.”
Members of the audience were invited to sign postcards protesting the prison at tables near the door. Copies of Dr. Hook’s study and several others were available as well.
http://www.mountwashingtonvalley.com/BDS/newsbds.shtml