http://campusprogress.org/tools/924/prison-for-profit-loses-its-appealPrison for Profit Loses its Appeal
Students force divestment from a for-profit prison corporation.
On March 27 th approximately 200 graduate teachers, undergraduates, and community members rallied in protest of Yale University ’s investment, through holdings in the hedge fund Farallon, in Corrections Corporation of America (CCA).
CCA has been criticized for prisoner abuse and has been suspected of helping to draft model mandatory minimum sentencing legislation through its membership in the American Legislative Exchange Council.
Private prisons make profit by taking a per diem rate for prisoners and cutting staffing costs and programs. Because of lower pay, staff turnover rates tend to be markedly higher in private prisons as well, creating a more volatile situation inside the prisons.
According to a study by criminologist James Austin, private prisons have 49% to 65% higher rates of violence than comparable public facilities.
Now Yale students and those at eight other schools where “Dump Farallon” activities took place can claim victory. Public filings from the Securities and Exchange Commission, released last week, reveal that Farallon has met student demands by fully divested from Corrections Corporation of America (NYSE:CXW).
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good for them. gold stars all around