Private Prisons And Perverse Incentives

Every once in a while, my city gives me something to brag about. Most recently, that’s the current administration’s approach to Criminal Justice.

A recent article from Fortune Magazine, of all places, sets it out.

When the city heads to Wall Street Thursday to borrow $610 million to build a jail and criminal justice complex on the site of an old coking factory, it’s betting it can better house criminals and rehabilitate them on its own. That means CoreCivic, which has run a Marion County jail for two decades, will lose the contract when the new one opens.

The decision to sever ties with CoreCivic is part of a shift in policy-making that seeks to address a cycle of recidivism that keeps sending repeat offenders back to jail. It joins other governments nationwide, including California, that are reconsidering a reliance on the private companies that stepped in as the war on drugs and mandatory minimum sentencing laws caused inmate populations to soar, leaving more than half of the states paying businesses to incarcerate their residents.

There is a mountain of data detailing what’s wrong with private prisons. (When my graduate students choose to write their research papers on the subject of for-profit prisons, their conclusions range from highly critical to horrified, and for good reason.) Zach Adamson, Vice-President of the Indianapolis City-County Council is quoted in the article with what may be the best summary of the problem with prisons for profit:

“The idea that there would be profit to be made through the imprisonment of our neighbors is something that’s abhorrent to a number of people—many of our constituents cannot process that,” said Zach Adamson, vice president of the council that oversees the consolidated government of Indianapolis and Marion County. “Criminal justice is not getting better as long as our primary concern is looking to cut corners and save costs.” (emphasis supplied)

In 2016, the city convened a task force to consider ways Indianapolis could cut crime and address jail overcrowding. The task force recommended addressing “underlying causes,” in an effort to reduce both crime and the $440 million dollars Indianapolis spends on criminal justice each year–far and away the city’s biggest expense.

The issues facing Indianapolis are hardly unique: some 40% of people detained in the country’s jails are mentally ill and up to 85 percent suffer from substance abuse (with respect to those who are mentally ill, psychiatrists tell us that substance abuse is an effort at “self-medicating.”)

The complex will consolidate the courthouse, its jails, and rehabilitation operations in one modern site. The city-county council voted in April 2018 not to privatize the new lockup, dealing a blow to CoreCivic, which has managed a facility there since 1997.

“The goal of the jail system shouldn’t be to fill the beds,” said Andy Mallon, corporation counsel for the government. “We’re trying to reduce crime and reduce the number of people who are involved in crime.”

Mallon’s observation is at the heart of what’s wrong with privatizing these elements of the criminal justice system. Private prison companies are in business to fill beds, and to do so as cheaply as possible, not to rehabilitate offenders. Their lobbyists work to criminalize additional behaviors and increase prison terms for offenses already on the books–measures that feed their bottom lines.

Their goal isn’t public safety, it’s profit, and the big private prison companies donate generously to politicians in order to protect those profits.

During the Obama Administration, the Department of Justice and several state governments  responded to the research, recognized the existence of the perverse incentives, and began  terminating contracts with companies like GEO and CoreCivic. Then, of course, we got Trump, and headlines like these:”Trump’s First Year Has Been the Private Prison Industry’s Best.”  and “Trump’s Immigrant-Detention Plans Benefit Private Prison Operators.”

In Indianapolis, I am happy to say, the city has chosen to bring best practices to bear on its criminal justice problems, to evaluate those it incarcerates in order to determine appropriate interventions– and to stop paying for-profit companies to warehouse offenders.

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Credit Where Credit Is Due

One of the unfortunate effects of our corrupt and paralyzed political structure is the “drowning out” effect, sometimes described as Washington “sucking the oxygen out of the room.” While our attention is fixated on the more dramatic consequences of our national government’s “brokenness,” we fail to notice the harms being done by the multitude of problems that government is simply not fixing.

One of those is the way creditworthiness is measured.

There’s no doubt that credit card companies charge excessive rates of interest. But as scholars at the Brookings Institution point out, simply legislating a cap would actually compound the problem.

When does the interest rate a lender charges cross the line from economically justified to immoral? Societies have struggled with this question since biblical times. Last week, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) took a crack at this puzzle, proposing to cap credit card interest rates at 15 percent. They’re concerned that the U.S. credit system traps working families with unsustainable debt. We share their concern, but their proposal uses a blunt instrument to attack a nuanced problem.

The Loan Shark Prevention Act, as the new legislation is called, is likely to hurt the people it’s designed to help, driving the market away from consumers with low credit scores. Some people may have their interest rates reduced, but many would no longer have access to credit at any price. Banks have been clever in figuring out how to hide credit in fees, as anyone who has paid $35 for an overdraft knows.

Instead, the authors propose making affordable credit accessible to a much larger group, by fixing what they identify as “the flawed scoring system that allocates credit.”

Our current system decides who gets credit and at what price using algorithms that analyze a person’s credit history and calculate a credit score. FICO, the most common credit score, employs a range between 300 and 850. There is no universally accepted definition of what constitutes a prime or subprime credit score but, generally, people with scores above about 680 are rewarded with cheap credit and high borrowing limits. Those classified as either near-prime or subprime, whose scores largely fall below 680, have a tougher time accessing and paying for credit.

The apparent objectivity of the algorithm masks a whole host of issues. A peek behind the credit-scoring curtain reveals that, as in “The Wizard of Oz,” there are humans feeding imperfect information into the machine. You could be the most creditworthy person on the planet, but if you lack a credit history, are a young adult or a recent immigrant, or had financial hardship in the past five years, your score will be low. Credit reports are rife with errors: One out of 5 Americans has a material error on their score.

I recently encountered this precise circumstance with my granddaughter-in-law: she is young and had virtually no credit history. It wasn’t bad credit, it was no credit, because she had been prudent and avoided debt. No credit became a real problem when she and my grandson applied for a mortgage. (Even more maddening, one of the three reporting agencies kept telling the bank her credit was “frozen”–whatever that means–but continued to insist to her, during her multiple calls to correct the issue, that it wasn’t.)

The Brookings scholars write that “Congress should start examining this system and aggressively pushing for its improvement.”

Lawmakers should push for credit-scoring formulas that take a wider range of data into consideration. Paying a mortgage on time improves your credit score, but paying your rent on time does not, because mortgages are tracked and rents generally are not. That’s just not fair…

The Consumer Financial Protection Bureau estimates that 45 million Americans lack the data that credit bureaus use to create a credit score. If you don’t have a score, it can be very hard to get a loan, rent an apartment or persuade an employer to hire you. Credit scores have become an essential component of what Princeton sociologist Frederick Wherry calls “financial citizenship” — the ingredients necessary to participate fully in the economy and civil society.

If we had a functioning Congress, this is one of the multiple tasks to which they should attend. But of course, we don’t. Right now, Mitch McConnell (aka the most evil man in America) is preventing the Senate from even considering one hundred bills that have been passed by the House.

We have a legislature that is incapable of doing anything, and an Administration trying its best to undo what was accomplished in the past. We aren’t even a banana republic: we’re a failed state.

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Lessons From A Small French Town

It’s a truism among urbanists that small towns in the United States are dying.

Here in Indiana, the data confirms the bleak prognosis: Main Streets are filled with boarded up stores, wig shops and formerly vibrant emporiums that have been turned into sad “museums.” Young people move away as soon as they can, leaving a graying and resentful population behind.

The phenomenon is not restricted to the United States; everywhere, cities are booming while small towns are on the same, sad trajectory. So a recent report in the Guardian was eye-opening.

On a lane in what was once considered eastern France’s grimmest town, a street artist is up a ladder finishing a mural, the independent bookshop has a queue at the till, the organic cooperative is full of customers and Séverine Liebold’s arty independent tea shop is doing a brisk trade….

Just over a decade ago, Mulhouse, a town of 110,000 people near the German and Swiss borders, was a symbol of the death of the European high street. One of the poorest towns of its size in France, this former hub of the textile industry had long ago been clobbered by factory closures and industrial decline. It had high rates of poverty and youth unemployment, a shrinking population, and more than 100 shops empty or boarded up. The centre had become associated with gangs….

Today, Mulhouse is known for the staggering transformation of its thriving centre, bucking the national trend for high street closures.

In the past eight years, more than 470 shops and businesses have opened here. Mulhouse is unique in that 75% of new openings are independents, from comic book stores to microbreweries and organic grocers. It is one of the only places in France with as many independents as franchises. And it is one of very few places in France where more shops are opening than closing.

Mulhouse was only one of a large number of dying small towns in France.

French political powers woke up late to the problem of dying town centres. Outside the Paris region, an average of 11% of high street premises lie empty, similar to the UK. But France, which has a powerful hypermarket industry and lobby, has for decades hastened town centre decline by allowing out-of-town superstores to mushroom over kilometres of dull grey hangars on the outskirts of towns.

Leaders only recently turned to the issue, fearing boarded up shopfronts and vanishing services could help usher in Donald Trump-style populists. Polls showed that in small French towns, the fewer the services on offer – notably post offices – the higher the vote for the far right.

What caused this town’s turnaround? How did Mulhouse buck the trend?

The simple answer is public investment in public amenities.

Mulhouse set out to rebalance the housing mix. Generous subsidies for the renovation of building fronts expedited a facelift of more than 170 buildings. Security and community policing were stepped up. Transport was key – with a new tram system, bike schemes, shuttle buses and cheap parking.

But making the town’s public spaces attractive was just as important, with wider pavements, dozens of benches, and what officials deemed a “colossal budget” for tree planting and maintenance, gardening and green space. Local associations, community groups and residents’ committees were crucial to the efforts.

The idea was to create a town center where people could feel good, where they could congregate. The town re-appropriated the town’s center as a kind of agora, the place where everyone could meet. Olivier Razemon, the author of a recent study called How France Killed Its Towns, says town centers should be seen as a theatrical backdrop to life’s encounters, with the understanding that: “People don’t go to the town centre just for shops, but because it’s pleasant, because they want to meet up.”

There were several other aspects to Mulhouse’s revitalization. An important element was emphasis upon independent, “home grown” enterprises offering wares not available in the big box stores.

The major driver of the town’s resurgence, however, was its substantial public investment in public amenities: public transportation, restoration of the built environment, generous plantings and landscaping that made the town’s public spaces attractive–all of the elements of what urbanists call “quality of life.”

In so many small towns, unwillingness to spend tax dollars on these “quality of life” elements creates a vicious cycle of disinvestment and abandonment. Mulhouse chose to invest heavily in them instead, and to create a virtuous cycle. It worked.

There’s a lesson there.

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Theocrats At HHS

Readers from Indiana will understand why I found this recent Politico headline chilling: “How Mike Pence’s Mafia Took Over Health Care Policy.”

Pence, of course, could care less about health care, or policy of any sort that doesn’t advance his Christianist agenda. And he “serves” (or is that word “serviles”?) a President who has no discernible interest in any policy–or anything other than his own self-aggrandizement. So the fact that Pence has installed his preferred people at Health and Human Services tells us that health policy will be made on the basis of ideology, not science or evidence.

Behind the scenes, Pence has developed his own sphere of influence in an agency lower on Trump’s radar: Health and Human Services. It’s also the agency with the ability to fulfill the policy goal most closely associated with Pence over his nearly 20 year career in electoral politics: de-funding Planned Parenthood.

Numerous top leaders of the department — including Secretary Alex Azar, Surgeon General Jerome Adams and Medicaid/Medicare chief Seema Verma — have ties to Pence and Indiana. Other senior officials include Pence’s former legislative director from his days as governor and former domestic policy adviser at the White House.

“He has clearly recruited people connected to him who share his very extreme views on sexual and reproductive health care,” said Emily Stewart, the vice president of public policy at Planned Parenthood. “This has been one of the most active administrations ever on rolling back reproductive rights and there’s no way that happens unless you have people in the White House driving the effort to put out policies at such a rapid clip.”

Before the courts intervened, HHS was getting ready to implement rewritten federal policies to curb abortion and–Pence’s wet dream– cut funding to Planned Parenthood. The new regulations would also have tightened the conditions under which Title X federal family planning grants are awarded, ensuring that clinics wouldn’t even be able to refer women to entirely separate abortion providers.

And in a nod to Pence’s longterm efforts to privilege religious bigotry, the agency this month boosted “religious conscience protections” for providers who refuse to perform certain medical services, including abortion, citing religious or moral objections.

The changes to Title X are the culmination of a battle Pence waged first as a member of Congress, then as governor and now in the White House. The Title X rules, which force providers of federally funded family-planning programs to separate themselves from abortion providers, are aimed squarely at Planned Parenthood, which relies heavily on such funding. The Title X changes don’t cut off Medicaid funds from Planned Parenthood — although cutting off that big pot of money is on the GOP wish list as well.

Pence has installed a number of people at HHS who were part of his Indiana administration. As White House staff members have confirmed, from the very outset of the Trump administration, Pence had carte blanche to identify nominees he preferred  “particularly in roles Trump didn’t really care about,” as one GOP operative put it.

Even somewhat smaller projects appear to bear the vice president’s ideological imprint — for example, a recent HHS decision to grant South Carolina a waiver that allows foster care providers to reject potential families who have different religious beliefs.

These conservative and religious views have played into the administration’s foreign as well as domestic policy. Internationally, Trump and Pence have gone beyond even other Republican administrations in curbing access to abortion and contraception by expanding the so-called Mexico City policy barring U.S. foreign aid to groups that promote or provide abortion.

Trump is fixated on himself. Pence is fixated on imposing his peculiar version of Christianity  on America.

Neither they nor any of the criminals and incompetents they’ve installed as cabinet members and White House staffers care anything at all about We the People, the Constitution, or the Rule of Law.

If we don’t evict the whole crew in 2020, there may not be any going back.

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Molecules Of Freedom? Freedom Gas?

Shades of George Orwell!

A few days ago, media outlets reported on the Trump Administration’s most recent effort to  fulfill Tallyrand’s famous dictum that “Language is given to man to conceal his thoughts.” Or, in this case, to deceive and mislead.

The Department of Energy appears to have a surprising new nickname for natural gas: “freedom gas.”

The unexpected new moniker made its debut in a press releaseissued Tuesday to announce the approval of additional liquified natural gas (LNG) exports from a terminal on Quintana Island, Texas. It also included the term “molecules of U.S. freedom.”

Under Secretary of Energy Mark W. Menezes unveiled the term “freedom gas” in the release, which notes that he highlighted the approval at the Clean Energy Ministerial in Vancouver, Canada…

Later in the release, Steven Winberg, the assistant secretary for fossil energy, said the department is promoting an efficient regulatory system to enable “molecules of U.S. freedom to be exported to the world.”

Gee, almost makes me nostalgic for “Freedom Fries”…

Inept–okay, hilariously stupid–as this may be, this most recent aggression against the proper use of language is hardly a new effort by the Trump administration. In December of 2017, employees of the Centers for Disease Control leaked a list of words that they had been newly forbidden to use: “vulnerable,” “entitlement,” “diversity,” “transgender,” “fetus,” “evidence-based” and “science-based.”

Evidently, the administration was operating on the theory that, if there isn’t a word, the reality the word is intended to describe no longer exists. (And if you can’t see a ship named the USS John McCain, the annoying military hero for whom it is named can no longer diminish Cadet Bone Spurs by his mere presence.)

Doublespeak is a term coined by (or at least closely associated with) George Orwell. It describes language that is intended to obscure, disguise or distort the meaning of words, and the Trump Administration isn’t the first to employ it.  (Remember when George W. Bush dubbed his roll back of air quality protections the “Clear Skies” bill?)

According to Wikipedia,

Doublespeak may take the form of euphemisms (e.g. “downsizing” for layoffs and “servicing the target” for bombing), in which case it is primarily meant to make the truth sound more palatable. It may also refer to intentional ambiguity in language or to actual inversions of meaning. In such cases, doublespeak disguises the nature of the truth. Doublespeak is most closely associated with political language.

“Downsizing” and “Clear Skies” are pretty effective uses of doublespeak. “Molecules of Freedom,” on the other hand, is just risible, and “Freedom Gas” sounds like a euphemism for farts. These silly labels are evidently meant to counter environmental concerns about fossil fuels, but they are more likely to trigger ridicule.

“Molecules of freedom” and ‘Freedom Gas” are gifts to late-night comedians.

Actually, this whole ham-handed effort at managing the language of public policy should remind sane Americans that we were lucky to “elect” Trump. We could just as easily have elected a white nationalist criminal autocrat who was smart, or at least competent–a Mitch McConnell type–who would have been able to effectively dismantle American democracy and destroy the rule of law.

We lucked out: we are reminded daily that our accidental President is an intellectually limited buffoon and that he has assembled a staff and cabinet that can’t even operate as a cabal.

Think Keystone Kops trying to be ruthless–while farting Freedom Gas.

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