1. Transitioning America’s Criminal Justice System “The United States today delivers law and order in the same socialist manner that the U.S.S.R. delivered food and shoes - and with comparable results.” --Randy Barnett (Benson, 1998, p. ii) Daniel J. D’Amico Mises Academy: The American Prison State

4. Prison Inmates in the US State’s plus Federal Total Inmates charged with violent crimes …property crimes …drug crimesDifference Inmates1,296,700687,700248,900253,300794,500

5. Criminal Offense Type State Total Inmate PopulationPropertyDrugsRemainders 1Texas171,79026,13329,489116,168 2California156,10834,57432,51089,025 3Florida92,84420,84619,17452,824 4New York62,5996,87013,42642,303 5Georgia52,47810,3818,98433,113 6Michigan51,5704,5414,31442,715 7Ohio49,6914,3197,88937,483 8Pennsylvania46,0283,9987,91734,113 9Illinois45,4029,20310,91425,285 10North Carolina38,4234,7836,17127,469 11Louisiana37,9696,66910,79220,509 12Arizona35,8019,0748,10118,626 13Virginia31,6479,0865,96316,598 14Missouri30,6896,2775,70818,704 15Alabama29,2358,2365,35715,642 16Indiana27,8075,0324,01818,757 17New Jersey27,4943,0988,47815,918 18Tennessee26,4159,4595,31411,642 19Oklahoma25,147No Data7,66817,479 20South Carolina24,2395,3534,74014,146 Totals1,039,137654,372

6. State Total Inmate Population Annual Cost Per Inmate Total Annual Inmate Costs Hypothetical Inmate Population Hypothetical Total Inmate Cost 1Texas171,790$18,031.00$3,097,545,490116,168$2,094,625,208 2California156,108$35,587.00$5,555,415,39689,025$3,168,132,675 3Florida92,844$18,585.80$1,725,580,01552,824$981,776,299.20 4New York62,599$36,835.00$2,305,834,16542,303$1,558,231,005 5Georgia52,478$16,181.00$849,146,51833,113$535,801,453 6Michigan51,570$26,353.83$1,359,067,01342,715$1,125,703,848 7Ohio49,691$24,644.80$1,224,624,75737,483$923,761,038.40 8Pennsylvania46,028$32,032.00$1,474,368,89634,113$1,092,707,616 9Illinois45,402$21,278.00$966,063,75625,285$538,014,230 10North Carolina38,423$26,104.80$1,003,024,73027,469$717,072,751.20 11Louisiana37,969$15,775.30$598,972,365.7020,509$323,535,627.70 12Arizona35,801$22,535.00$806,775,53518,626$419,736,910 13Virginia31,647$22,830.00$722,501,01016,598$378,932,340 14Missouri30,689$12,867.00$394,875,36318,704$240,664,368 15Alabama29,235$14,402.90$421,068,781.5015,642$225,290,161.80 16Indiana27,807$20,589.65$572,536,397.6018,757$386,200,065.10 17New Jersey27,494$34,600.00$951,292,40015,918$550,762,800 18Tennessee26,415$22,779.65$601,724,454.8011,642$265,200,685.30 19Oklahoma25,147$17,206.10$432,681,796.7017,479$300,745,421.90 20South Carolina24,239$16,432.00$398,295,24814,146$232,447,072 Total Difference$9,402,052,513

7. Correlations QuintileAverage Inmate Population 2007Average Estimated Annual Cost Per Inmate I79,138.7$25,235.84 II30,283.9$20,329.24 III19,526.3$24.441.42 IV7,793.6$25,510.95 V3,127.3$31,989.88

8. Correlations with smaller sample QuintileAverage Inmate Population 2007 Average Property Crime: Total Inmate Ratio Average Drug Crime : Total Inmate Ratio Average Estimated Annual Cost Pet Inmate I88,512.880.160.18$26,031.30 II35,367.690.210.20$19,547.83 III24,457.000.190.22$24,004.38 IV12,220.750.150.17$27,558.06 V4,492.290.190.15$27,391.54

9. Criminal Justice and the Financial Crisis $2,000,000,000: Edward Byrne Memorial Justice Assistance Grant program $225,000,000: grants to improve the functioning of the criminal justice system $40,000,000: competitive grants to provide assistance and equipment to local law enforcement along the Southern border $225,000,000: assistance to Indian tribes $100,000,000: Office for Victims of Crime $125,000,000: for assistance to law enforcement in rural States and rural areas, to prevent and combat crime, especially drug-related crime. $50,000,000: for Internet Crimes Against Children initiatives. $225,000,000 for grants to combat violence against women Total: $2,990,000,000

10. What is Transition Economics? Comparative Economics: Markets vs. Planning Transition Economics: How do we move from here to there? Development Economics: How do we grow market economies?

11. Policy Suggestions *Radically cut federal and state criminal justice financing. Consider constitutional constraint moving forward. *Deregulate private security industry. *End all prohibitions on controlled substances and victimless crimes. *”De-criminalize” property violations and allow for civil arbitration.

12. Shock Therapy

13. The case for radically cutting centralized criminal justice financing *Hard budget constraints promote efficient resource allocation. *Violent crime is currently low. *The cultural proximity between the American urban poor and market processes is low relative to other shock therapy cases. *Informal networks tend to be resilient and adaptive.