Goldman Sachs to invest $9.6m in New York inmate rehabilitation

[xchrom]

http://www.guardian.co.uk/society/2012/aug/02/goldman-sachs-invest-new-york-jail


Rikers Island jail. If the projects run well, the investors can earn a healthy profit. If it fails to meet targets, then they get hit with a loss. Photograph: Chip East/Reuters

New York's notorious Rikers Island jail would not immediately suggest an obvious source of lucrative profits for the banking industry. But investment giant Goldman Sachs is now hoping to make potentially millions of dollars by helping persuade the prison's inmates to turn over a new leaf.

The strange turn of events is the consequence of an announcement on Thursday by New York City mayor Michael Bloomberg that the facility is to be the testing ground for a controversial new source of funding for social projects called "social impact bonds".

The device, pioneered in Britain, will be the first of its kind for an American city and essentially taps private investors for funds to run projects that have normally been the concern of the state or non-profits.

If the projects run well, the investors can earn a healthy profit. If it fails to meet targets, then they get hit with a loss.

[annabanana]

1. And just how is this deal incentivized to reduce

recidivism?

And if it isn't, what's it's purpose or use to the public?

[Ikonoklast]

5. They grind the un-cooperative inmates into a paste and make Soylent Green out of them.

And show the video of that process to the others.

Keeps 'em in line.

[valerief]

2. More slave labor for the corporatists. nt

[2pooped2pop]

3. I read recently

that the banks were investing heavily in weaponry, now prisons. We know they own the police. I don't think this is going to go well for the people.

[valerief]

4. Hell, no. It's like the start of a dytopian movie. nt

[MadrasT]

6. Recruiting program for their future executives? n/t