The Darker Profits from Unemployment

Hi Catherine:

This article and video have been going around on Facebook, and after reading about it I was very disturbed.

I’m wondering what your take on it is beyond the obvious and if you have any books or articles on the “business” of the prison system, youth incarceration or child sex trafficking in the US that you would recommend.

I would like to learn more about this terrible situation and possibly join an organization to help change things.

Article/Video: Sarah Kruzan: Sentenced to Life Without Parole at Age 16

Thank you and hope all is well with you in this not so well world!

Concerned in California

Dear “Concerned in California”:

Delighted to try to help.

I have read numerous books on the prison system and youth incarceration. I don’t know of one that I would recommend as a overall introduction.

There is a lot of material written by people who do not see the big picture. There are also lots of groups who are addressing the problem. Before you choose one, I would first take the time to really understand what is going on and where you can make a contribution that will be effective and energizing for you.

Step one – get a map of what is happening and why. Here are some of the components.

First, a decision was made more than a decade ago to do a series of things that would increase unemployment significantly in the US and globally. See: the Sir James Goldsmith youtube video and quotes posted on my blog.

Sir James Goldsmith on Corporate Agriculture
Sir James Goldsmith’s 1994 Globalization Warning

As part of this decision, the question was what do with the unemployed people – particularly the ones who had the right to vote and could impact political control if they were unhappy about what was happening.

Another way to frame this question was: How do large banks and corporations make money on growing unemployment and do so in a way that negates the political participation of the unemployed? The answer included criminalization – including drugs, prostitution, and prison.

To help describe the fundamental economics of targeting communities with narcotics trafficking, mortgage fraud and cycling people through the prison system, I wrote a case study that could be used for a business school course: “Dillon Read & the Aristocracy of Stock Profits.” This piece will take some time, but is worth studying in detail to understand the fundamental economics of how Wall Street and Washington make money engineering private prison companies – a component of the profits of unemployment.

Also check out the movie American Violet and the segment on prisons in Michael Moore’s new documentary, Capitalism: A Love Story.

Second, you will find that these developments also include an older history of using children for sex that is part of profitable operations from street prostitution to the kidnapping and selling children for sex slaves as well as using them for covert operations that create control files on and offer personnel benefits to politicians and business leaders:

The Franklin Cover Up

For some of the deeper history on these practices, see:

Secret, Don’t Tell: The Encyclopedia of Hypnotism

Third, it is important to understand that these developments are global, not just in the US. Slavery and sex slavery is growing significantly world wide, and is very much the result of the policies that Sir James Goldsmith speaks about in the interview listed above. Unfortunately, US policies abroad appear to promote it despite official pronouncements to the contrary. The Dyncorp sex slave trafficking story gave a tiny glimpse of what has been happening:

Our Hero – Kathryn Bolkovac

Fourth, it is important to understand that street businesses — whether drugs or prostitution or other forms of organized crime — are not unrelated to policies dictated from the very top. To see a glimpse of how prostitution and abuse of women threads in throughout all layers of society, sit down one day and watch Godfather I, II and III in one sitting. As Michael Corleone says…

In short, the guys at the top depend on the high margins at the bottom. I describe this in my article, “Narco Dollars for Beginners.”

To change the fundamental trend and direction of these issues, we need to change the model that is being implemented which is reducing billions of people to dependency, poverty and death.

These links provide a great deal of information to digest that is not covered in most courses on American history or current events . So take your time and map the situation out strategically. There is lots of good in this world – and lots of opportunities for your generation to make a difference.

Once you have a good overview, you will want to find one specific area where you can become involved that is effective and energizing for you. I would check out groups thoroughly. Just because they have a good intent does not mean they have integrity or an effective plan or are organized to use your time well. When you find one that is appropriate and works for you, your service can do great good.

One more thought before I close.

I suspect the most effective way to help young men and women get off the streets and away from organized crime is by building a pathway into shelter and skills that will open up employment and entrepreneurial  opportunities. What many of these young men and women need are opportunities to create businesses and income that build personal and family financial security and strong local economies.

That was the idea behind the data servicing company I started in the 1990’s that is described in the story at “Dillon Read & Co. Inc & the Aristocracy of Stock Profits.” Read more here:  “Real Deal: Edgewood Technology Services” and “The Myth of the Rule of Law.” Part of our political challenge was that our hiring and training as well as our software tools threatened growing profits from narcotics trafficking and mortgage fraud, predatory lending and FHA foreclosures. We were standing in the way of the housing bubble. Now that the bubble has burst, I am hopeful that there will be interest.

If we figure out how to circulate our savings and investments locally, we can create numerous enterprises of these kinds. If we simultaneously illuminate government spending on the war on drugs, prisons and mortgage fraud, there is an opportunity to shift government resources in very positive ways that will create substantially greater income for everyone, including pension fund investors.

Needless to say, the economics of drugs and prisons are much, much more expensive for families, taxpayers and communities than training, jobs, employment and successful small businesses and farms.

Hope that helps you get started,

Good luck!

Catherine