While privatizing certain state/local government functions can be beneficial, the for-profit prison industry has become a prime example of how the profit motive leads to perverse business incentives. Administrators are pressured to hire fewer, less-experienced guards, cut food/health care, inflate costs, and ignore physical and sexual abuse among prisoners.
Now, Virginia is contracting out a facility for indefinitely sentenced sex offenders. Guaranteed occupancy for those cells?
From The Huffington Post