What You Don't Know Can ....

http://commdocs.house.gov/committees/judiciary/hju22258.000/hju22258_0f.htm
I got interested today in something I was discussing with a friend. It was about the U.S. Prison System and a hearing I listened to last year that was alarming. The link above is to the entire hearing but I have excerpted and bolded the sections I find alarming. For ease of reference those sections can be found in their entirety on pages 88-96.

Material Submitted for the Hearing Record

STATEMENT SUBMITTED BY THE U.S. CHAMBER OF COMMMERCE TO THE HOUSE JUDICIARY COMMITTEE . . .

FPI in the Free Market...Our free market system is essential to achieving and maintaining a vibrant and productive economy and is a necessary foundation of political and social freedom. The United States government is responsible for enforcing laws that promote competition in the marketplace and ensure a level playing field among competitors to benefit American consumers. Monopolies do not belong in a free market economy. ... This is exactly the situation with respect to FPI sales in the federal market. The federal government-the consumer in this case-is paying above market prices for lower quality goods and in doing so, is squandering American taxpayer dollars while completely ignoring the very rules it enforces in the commercial market. ...

The Need for Reform...In 1934, President Roosevelt established FPI as a government-owned corporation. FPI was given special ''mandatory source'' status in the government procurement process, forcing government agencies in need of a product to purchase that product from FPI. No consideration can be given to a private sector competitor unless that agency asks FPI for an exception from its own monopoly. It is ironic that there are laws prohibiting the U.S. from importing goods that are made by prisoners in other countries, yet we have laws that require our own federal government to buy goods and services from prisoners in this country.

........

Recent aggressive expansion by FPI into the services arena has caused great concern in the business community. Even though FPI's authorizing statute does not specifically mention services, FPI has interpreted that it is a ''preferential source'' for services and used this to enter into sole source contracts with Federal agencies for services. They are quickly expanding their services portfolio, which includes printing, environmental testing, recycling, mapping and imaging, distribution and mailing, laundry services, data conversion, and call center and help desk support.This expansion is alarming not only because it adversely impacts the private sector but also because it is wholly inappropriate to allow inmates access to classified or infrastructure information used in mapping projects or the personal or financial information of private citizens used in call center operations. We should be extremely cautious with the information we arm our federal inmates with in preparation for life beyond bars. ...FPI's desire to expand into the commercial marketplace is an alarming development that is seen as a call to arms by industry. The Chamber opposes FPI's move into the commercial marketplace for four reasons. First, the decision to expand into the commercial marketplace is in conflict with the clear language of FPI's enabling legislation and beyond the discretion of the Board. Second, it is a reversal of more than sixty years of public policy. Third, FPI has claimed this authority for itself without any specific legislative authority from Congress. Finally, the creation of a state run enterprise, competing with its own citizens, is a policy so at odds with the role of government in a free society that it is a decision best left to Congress.

Conclusion

The U.S. Chamber and the business community appreciate the Subcommittee's examination of FPI's impact on the private sector and urge quick consideration of H.R. 2965 by the full committee. Businesses rely on an efficient, fair competitive process to provide the federal government with goods and services to maintain and grow their businesses.

Thank you for the opportunity to submit this statement for the record.

STATEMENT OF ROGER F. COCIVERA, PRESIDENT AND CEO, TEXTILE RENTAL SERVICES ASSOCIATION OF AMERICA