Who is investing? At least 37 states have legalized the contracting of prison labor by private corporations that mount their operations inside state prisons. The list of such companies contains the cream of U.S. corporate society: IBM, Boeing, Motorola, Microsoft, AT&T, Wireless, Texas Instrument, Dell, Compaq, Honeywell, Hewlett-Packard, Nortel, Lucent Technologies, 3Com, Intel, Northern Telecom, TWA, Nordstrom's, Revlon, Macy's, Pierre Cardin, Target Stores, and many more. All of these businesses are excited about the economic boom generation by prison labor. Just between 1980 and 1994, profits went up from $392 million to $1.31 billion. Inmates in state penitentiaries generally receive the minimum wage for their work, but not all; in Colorado, they get about $2 per hour, well under the minimum. And in privately-run prisons, they receive as little as 17 cents per hour for a maximum of six hours a day, the equivalent of $20 per month. The highest-paying private prison is CCA in Tennessee, where prisoners receive 50 cents per hour for what they call "highly skilled positions." At those rates, it is no surprise that inmates find the pay in federal prisons to be very generous. There, they can earn $1.25 an hour and work eight hours a day, and sometimes overtime. They can send home $200-$300 per month.
Thanks to prison labor, the United States is once again an attractive location for investment in work that was designed for Third World labor markets. A company that operated a maquiladora (assembly plant in Mexico near the border) closed down its operations there and relocated to San Quentin State Prison in California. In Texas, a factory fired its 150 workers and contracted the services of prisoner-workers from the private Lockhart Texas prison, where circuit boards are assembled for companies like IBM and Compaq...[Former] Oregon State Representative Kevin Mannix recently urged Nike to cut its production in Indonesia and bring it to his state, telling the shoe manufacturer that "there won't be any transportation costs; we're offering you competitive prison labor (here)."
Side by side with the lynching – indeed far surpassing it in terms of depth and reach through the black community – was the money angle. The end of slavery didn't mean the end of servitude by any means. As each Southern state was returned to the control of its defeated white elites after the Civil War, they quickly gamed the legal system to provide them with a virtually unlimited supply of convict labor – without rights, without protection, in chains, under the bullwhip, just like the good old days. The smallest infractions of the law, petty fines, bad debts – or often, nothing at all but the need of the local bossman – swept multitudes of black men and women into minor jail terms that would be extended by months, sometimes years through draconian "fees" and "court costs" they would have to "work off" – in the fields, in the mines, laying rail, building roads, draining swamps. Savvy brokers contracted with state and local governments to manage the trade in these convicts, many of whom were simply worked to death or crippled for life. There was no profit in looking after them anymore; they were no longer someone's valuable "property" but just so much ever-replaceable fodder churning endlessly through the legal machine... Freed but disenfranchised, emancipated but still in chains, balked by law and brutal custom from full participation in society, the Southern blacks also made handy targets to divert the anger and dissatisfaction of the "poor white trash" from the elites that exploited them as well, albeit less severely. If even the poorest white man could consider himself superior to someone, if you could keep him tied up in psychological and emotional knots about inferior darkies messing with his women, going to his schools, sitting at his lunch counters, drinking from his water fountains, swimming in his public pools, living in his neighborhoods, why then he'd never make common cause with his black brothers and sisters in poverty to fight for a better life. Canny patricians played whole decks of such race cards to win the votes of the crackers and rednecks they privately despised: "Don't vote for that commie over there talking about unions and fair wages and equality; vote for me, vote for the man who'll keep your women and children – and your drinking water – safe from the Negro!" [For much more, see the book, Worse Than Slavery, by David Oshinsky.)
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