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Prison Economy: How Inmates Trade, Work, and Earn Behind Bars

Published on January 10, 2025, by InmateAid

Table of Contents

Introduction

The prison economy operates as a microcosm of the outside world, with unique constraints and rules shaping how inmates trade, work, and earn. Despite the tightly controlled environment, inmates have developed sophisticated methods to conduct economic activities, often involving commissary goods, inmate labor, and unofficial bartering systems. Understanding how this economy functions offers insight into inmate life, institutional dynamics, and potential areas for policy improvement.

Commissary and Currency

At the core of the prison economy is the commissary, a facility-operated store where inmates can purchase items such as hygiene products, snacks, and writing supplies. These goods become a form of currency within the prison walls:

  • Commissary Goods as Currency: Popular items such as instant noodles, coffee, and stamped envelopes are frequently used in trade because of their consistent demand. Inmates rely on these goods not only for personal use but also as a medium of exchange to obtain other needed services.

  • Survival and Status: For inmates without financial support from family or friends, earning commissary items is essential for survival and social standing. Those with access to more commissary goods may gain influence and form social networks that enhance their safety and comfort.

Inmate Labor and Wages

Inmate labor constitutes a major part of the prison economy. Work opportunities provide inmates with a sense of purpose and a way to earn:

  • Work Assignments: Many correctional facilities offer work assignments, including kitchen duties, laundry services, and maintenance tasks. These roles are necessary for the facility's daily operation and are often mandatory.

  • Wages: Inmates typically earn a small wage ranging from a few cents to a few dollars per hour, depending on the state and facility. While these wages are minimal, they allow inmates to buy commissary items and occasionally send money to family members.

  • External Work Programs: Some prisons collaborate with private companies to provide work opportunities for inmates. These programs can help inmates develop valuable job skills, but critics argue that the low compensation rates exploit inmate labor while generating significant profits for outside entities.

Informal Services and Bartering

Inmates engage in a variety of informal services, creating a shadow economy that complements the formal prison system:

  • Services Offered: Skilled inmates may provide services such as tailoring, haircuts, tattooing, and legal assistance. These services fulfill unmet needs within the prison and can be critical for inmates seeking to maintain a sense of normalcy.

  • Bartering: These services are usually compensated with commissary items or through direct bartering. For example, an inmate who excels at legal research may draft motions or appeals in exchange for food or personal care products. The informal nature of these exchanges underscores the adaptability of inmates in resource-limited environments.

Bartering and Commodity Value

Bartering thrives due to the absence of cash within prison walls. The value of items is determined by their availability and necessity:

  • Commonly Traded Items: Non-perishable foods and hygiene products are highly valued commodities. Items like instant coffee, ramen noodles, and toiletries often serve as a form of currency.

  • Market Fluctuations: The value of items fluctuates based on availability and demand, much like a real-world market. When certain items are scarce, their perceived value increases, leading to more complex trades.

  • Shift from Tobacco: Cigarettes, once a dominant currency, have been replaced by other goods due to tobacco bans in many prisons. Inmates have adapted by identifying other universally accepted commodities for trade.

Gambling

Gambling forms another facet of the prison economy, offering recreation and risk in equal measure:

  • Common Activities: Inmates gamble on sports events, card games, and other recreational activities. Gambling provides entertainment and an opportunity to earn goods or services.

  • Risks: Although gambling is typically prohibited, it persists and can lead to conflicts or debts among inmates. Disputes arising from unpaid debts or cheating can escalate into violence, making gambling a volatile aspect of prison life.

Contraband Trade

Contraband represents a significant, albeit illegal, part of the prison economy. Despite strict security measures, contraband continues to flow into prisons:

  • Common Contraband Items: Cell phones, drugs, and weapons are smuggled in and sold at high prices. These items are highly sought after but pose serious security risks.

  • Security Risks: The presence of contraband undermines facility security and can result in severe disciplinary actions for those involved. Correctional officers continuously work to intercept contraband, but the demand for these illicit items drives persistent smuggling efforts.

Challenges and Implications

The prison economy highlights systemic issues within correctional institutions, revealing both inmate ingenuity and institutional shortcomings:

  • Low Wages and Limited Access: Low wages and restricted access to goods drive inmates to rely on informal economies. This reliance can lead to increased tensions and conflicts among inmates.

  • Resilience and Adaptation: Economic activities within prisons demonstrate inmates’ resilience and adaptability. Despite the restrictive environment, inmates find ways to meet their needs and create systems of exchange.

Policy Considerations

Understanding the prison economy is crucial for improving inmate welfare and rehabilitation outcomes. Well-considered policies can address economic imbalances and reduce reliance on informal systems:

  • Fair Wages and Expanded Programs: Offering fair wages and expanding educational and vocational training can reduce reliance on informal economies. When inmates have access to meaningful work and fair compensation, they are better prepared for life after release.

  • Access to Necessities: Ensuring access to basic necessities helps promote stability and better prepares inmates for reintegration into society. By reducing the scarcity of essential items, facilities can mitigate some of the tensions that arise from economic disparities.

Frequently Asked Questions (FAQs)

1. What is the prison economy? The prison economy refers to the informal and formal systems of trade, labor, and commerce that exist within correctional facilities. It involves the exchange of goods, services, and labor, often using commissary items as currency.

2. How do inmates earn money in prison? Inmates can earn money through work assignments such as kitchen duties, maintenance, and laundry services. In some facilities, inmates also participate in external work programs partnered with private companies.

3. What items are commonly traded in the prison economy? Commonly traded items include instant noodles, coffee, toiletries, and stamped envelopes. These goods are frequently used as currency due to their high demand and consistent availability in commissaries.

4. How does bartering work in prisons? Bartering in prisons involves the direct exchange of goods or services. For example, an inmate may offer a haircut or legal assistance in return for commissary items like snacks or hygiene products.

5. Why are commissary goods considered currency in prisons? Commissary goods are considered currency because they are tangible, widely available, and consistently in demand. Since cash is prohibited, inmates rely on these items for trade and barter.

6. What are the risks of gambling in prison? Gambling can lead to conflicts, debts, and violence among inmates. Although it is typically prohibited, gambling persists as a form of recreation and an opportunity to earn goods.

7. How does contraband affect the prison economy? Contraband introduces high-risk, high-value items into the prison economy, such as cell phones and drugs. It undermines security and can lead to severe consequences for inmates caught possessing or trading contraband.

8. How can prison policies improve the inmate economy? Policies that offer fair wages, expand work programs, and ensure access to basic necessities can reduce reliance on informal economies and promote a safer, more rehabilitative environment.

9. Are there benefits to the prison economy? While the prison economy highlights systemic issues, it also fosters resilience and adaptation among inmates. Economic activities provide a sense of purpose, help meet basic needs, and teach skills that may be useful upon release.

Conclusion

The prison economy, though operating under strict constraints, mirrors the complexities of economic systems in the outside world. Addressing its challenges requires thoughtful policies that balance security, fairness, and rehabilitation. By understanding and improving this hidden economy, correctional institutions can foster a safer and more rehabilitative environment for inmates.