Episode Summary: The Economics of Everyday Things - Episode 70: Prison Labor

Host: Zachary Crockett
Release Date: November 11, 2024
Podcast: The Economics of Everyday Things
Host/Author: Freakonomics Network & Zachary Crockett

Introduction to Prison Labor

In Episode 70, titled "Prison Labor," Zachary Crockett delves into the intricate world of prison labor in the United States. The episode examines how incarcerated individuals contribute to various industries, the historical context of this labor force, and the economic and ethical implications surrounding it.

A Day in the Life of an Incarcerated Worker

The episode opens with an introduction to Christopher Barnes, an inmate at Franklin Correctional Center in Bun, North Carolina, who works at a highway sign plant within the prison. Barnes describes his daily routine and the nature of his work:

Christopher Barnes [01:12]: "I get my thoughts together, get down, and then get my hygiene together."

Barnes highlights the pride he takes in manufacturing highway signs, a role that often surprises his family:

Christopher Barnes [01:44]: "It's amazing that we do all these signs, you know."

Despite being incarcerated for life for first-degree murder, Barnes emphasizes the structured environment and the purpose his work serves within the prison system.

Historical Context of Prison Labor

Zachary Crockett provides a historical overview of prison labor in America, tracing its roots back to colonial times when Britain utilized transported criminals alongside enslaved individuals to sustain the early agrarian economy. The evolution continued post-Civil War with the 13th Amendment, which abolished slavery except as punishment for a crime:

Christopher Barnes [04:54]: "So the 13th Amendment outlaws slavery, except when you have been convicted of a crime."

Laura Appleman, a law professor at Willamette University, elaborates on this legacy, explaining how it transformed into a system where prison labor became a cost-saving measure for the state.

Modern Practices of Prison Labor

Today, approximately 800,000 incarcerated individuals participate in prison labor across the United States, contributing to an estimated $11 billion worth of goods and services annually. These workers are employed in diverse sectors, including manufacturing, agriculture, and public services. For instance, Correction Enterprises, a state-operated entity in North Carolina, manages multiple facilities that produce items ranging from license plates to prescription glasses.

Lee Blackmon [07:50]: "Every sign is preassembled here at this sign plant. So when it gets to the road, we know absolutely it's going to fit and it's going to work."

The economic efficiency of prison labor is highlighted by the stark difference in labor costs compared to the private sector. While typical businesses allocate 25-35% of production costs to labor, Correction Enterprises maintains this figure at approximately 2.5%.

Lee Blackmon [10:18]: "If you pay taxes, and I'm a taxpayer in the state of North Carolina, I want everybody to be as frugal with my tax dollars as they can be."

Economic and Ethical Implications

The episode critically examines the ethical dimensions of prison labor. Unlike traditional employment, incarcerated workers are often paid minimal wages, ranging from 13 cents to 52 cents per hour, or sometimes nothing at all. This lack of fair compensation raises questions about exploitation and the true cost savings for taxpayers.

Christopher Barnes [10:33]: "Prison labor is classified as, quote, non market work, so you don't have to pay them anything near the minimum wage."

Furthermore, the portrayal of prison labor as a rehabilitative tool is scrutinized. While some argue that work programs can reduce recidivism by equipping inmates with job skills, data suggests mixed outcomes. For instance, Brian Scott, a former inmate, successfully transitioned to a civilian job post-release, earning significantly more than he did while incarcerated:

Brian Scott [23:11]: "I think my starting pay was $15 an hour. That first paycheck. It was more money than I would make in almost an entire year working for Correction Enterprises."

However, the majority of incarcerated individuals do not reap such benefits, with over 60% unemployed a year after release.

Living Conditions and Worker Treatment

The episode sheds light on the harsh realities faced by prison workers. Brian Scott recounts the challenges of working under Correction Enterprises, where unjust deductions from wages and the necessity of side hustles to supplement income are commonplace:

Brian Scott [18:00]: "A lot of people couldn't afford that sort of thing."

Additionally, the narrative exposes the lack of employment protections for prisoners. Unlike regular employees, incarcerated workers are not covered by workplace safety regulations or workers' compensation in case of injury.

Laura Appleman [21:18]: "It's not forced labor, although depends how you define forced. It's not the chain gang, it's not convict lease. But the pressures are different."

Conclusion: The Dual-Edged Sword of Prison Labor

"The Economics of Everyday Things" presents a nuanced view of prison labor, balancing its economic benefits against the ethical and social challenges it presents. While prison labor undeniably reduces costs for governments and provides some inmates with skills, it also perpetuates a system of low wages and limited opportunities for meaningful reintegration into society.

Christopher Barnes encapsulates the personal impact of this system:

Christopher Barnes [24:04]: "Quietness goes a long way."

The episode concludes by emphasizing the need for a deeper societal conversation about the role of prison labor in the American economy and its implications for justice and rehabilitation.

Key Takeaways

• Economic Efficiency: Prison labor significantly reduces production costs for government-run and private enterprises.
• Historical Roots: The use of prison labor is deeply entrenched in America's historical and legal framework, particularly the 13th Amendment.
• Ethical Concerns: Minimal compensation and lack of employment protections raise ethical questions about exploitation and fairness.
• Rehabilitation vs. Exploitation: While some inmates benefit from job training, the overall impact on reducing recidivism is limited.
• Personal Stories: Individual accounts, such as those of Christopher Barnes and Brian Scott, highlight the human side of prison labor dynamics.

Notable Quotes

• Christopher Barnes [04:54]: "So the 13th Amendment outlaws slavery, except when you have been convicted of a crime."
• Lee Blackmon [10:18]: "If you pay taxes, and I'm a taxpayer in the state of North Carolina, I want everybody to be as frugal with my tax dollars as they can be."
• Brian Scott [23:11]: "I think my starting pay was $15 an hour. That first paycheck. It was more money than I would make in almost an entire year working for Correction Enterprises."
• Laura Appleman [21:18]: "It's not forced labor, although depends how you define forced. It's not the chain gang, it's not convict lease. But the pressures are different."

This episode offers a comprehensive exploration of prison labor, encouraging listeners to reconsider commonly held perceptions and understand the complex interplay between economics, justice, and human dignity within the prison system.