Michigan Prisoners Lose $7 Million Undercutting Michigan Businesses

According to the Detroit News, state auditors say that the government of Michigan is losing money by having prisoners make license plates, road signs, office furniture and other products. Not only do these prisoners make products for the state using slave labor that compete with privately made products, they lose money doing so according to an audit released Tuesday by the Bureau of Correctional Industries. These prisoner labor products lost more than $7 million over four years.

Apparently though the program's mission isn't to make money, although I'm pretty sure it's mission isn't to lose $2 million a year either. In fact, state law requires these prisoner built products to be a "total self-supporting system"- but it isn't, and hasn't been for years, and there is no real urgency or desire by Democratic officials running our state to comply with the law.

The Bureau of Correctional Industries says it it employs more than 1,000 inmates on any given day. These products "save the state from having to buy the products separately." $7 million dollars probably could buy a lot of these products on the open market, supporting Michigan businesses and industries.

Although I think it is a fine sentiment to want prisoners to work while they are incarcerated, and I am all for teaching job skills to those who need them, something bothers me about my tax money going to have prisoners build products that undercut private company products in this state, hurting private enterprise, all while doing so in an inefficient and unprofitable manner.

UPDATE: Via the excellent analysis at the Mackinac Center, here are two articles you might want to read that back up my view on this whole issue- Unfair Competition from Prison Labor Requires a Congressional Fix and State Government Competes Unfairly With Private Firms.