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Kroeger (2004) argues that it is an objective truth that government is usually less efficient than the private sector especially when in a price competitive environment. Morris (2011) argues that the public sector can be quite efficient when not handicapped by regulations designed to subsidize the private sector.
The debate of private sector versus public sector has raged for quite some time but the idea of privatization of prisons is relatively new to this debate. No one could deny that competition breeds efficiency in the typical sense that we think of in a free market economy but can we (should we) compare the sale of goods to the confinement and treatment of violent felons?
As you can see in the article “Overview: Trends in the Crime Control Industry,” the trend is rapid growth of numbers in adults in private prisons and it does not appear that the trend will be going away.