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Prison Labor: Capitalism Without Markets

Understanding the Economics of Totalitarian Institutions

Joseph Parampathu

Business & Economics / Accounting / Governmental

Prison labor remains a paradox in many ways. Simultaneously sparsely studied or recorded, and ubiquitous; derided by labor unions and free workers as unfair competition and lauded by businesses as the only way to insource labor at the globalized price point; rehabilitating prisoners through the virtue of work, while punishing them through that same work— prisons are in many ways the ultimate reflection of capitalism with the veneer of smiling faces removed. Prisoners work not to avoid starving or to have a place to sleep, but because it is a requirement of their existence. In the United States, all federal inmates must work, and those who refuse face severe penalties including being charged exorbitant sums to reimburse the government for the pleasure of being incarcerated. Prison labor remains anomalous to labor under traditional market forces, but exists within, and remains largely dominated by, the larger economies and politics that govern its existence. The prison is the final destination for the person-become-commodity that is the poor laborer. Those unable to afford the offramps to a prison sentence end up serving time and, once there, the institution of the prison attempts to keep them as an employee for life.

The unsavory nature of prison labor as an economic force has relegated prison labor to only the most dangerous and unwanted jobs in existence, for wages far below market value, and insulated from any claims to benefits, time-off, or workplace safety protocols. Politically, the prison labor industry in the United States has found its niche in attempting to return outsourced jobs to the domestic market, in effect, moving the colonies of American empire right into its own backyard. Without the economic differential power of sweatshop wages in low-income countries, prison wages become only marginally better than no wages, particularly when factoring in the many deductions that prisons apply for court fees, supervision costs, and even disciplinary functions. While these economic factors play a defining role in determining the realities of prison labor, they exist within a larger philosophy of prison life that is, ultimately, capitalistic. Even where the economics of prison labor bears literal resemblance to market demands, prison labor remains a necessary component of the philosophy of capital’s primacy over the labor pool. Insulated from the market, the totalitarian prison becomes the end-stage of capitalism; with contradictions uninhibited by class conflict and protected from the bargaining power of labor, prison work is the harbinger of what “free” work becomes as the capitalist fantasy continues.

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