BUSINESS MODEL: WE PAY GOLDMAN-SACHS TO NOT PUT US IN JAIL

[Mesozoic Mister Nigel]

http://www.sacbee.com/2012/08/02/4685218/goldman-sachs-to-invest-in-nyc.html

Oh god. No way this is a good idea, but then again we already have private prison systems which profit from the criminalization of the citizenry, and they have huge and powerful lobbies which promote increased criminalization and heavier penalties.

I strongly dislike the idea that we, as citizens, are going to pay corporations for our freedom, though, which is what this amounts to.

When you realize the extent to which these corporations influence whether and for how long people are imprisoned for certain crimes, or even whether they are crimes at all, this whole mess looks even less savory.

[LMNO]

It looks like they only make money if the recidivism rates drop, which should mean fewer convictions...


...however...


...it occurs to me that this only reflects repeat offenders.  They would make a boatload of cash if they increased the amount of first-offender convictions, as that would statistically rase the rates of non-recidivism.

[Roly Poly Oly-Garch]

I heard this story on the radio when I was lost in the hills this morning. I had hoped it was a side effect of the panic. Seems I wasn't panicked enough.

[Nephew Twiddleton]

Thats an unsettling prospect.

[Juana]

One more step into the prison-industrial complex. :\

[tyrannosaurus vex]

How long til we come all the way back around to selling indulgences?

[The Good Reverend Roger]

It looks like they only make money if the recidivism rates drop, which should mean fewer convictions...


...however...


...it occurs to me that this only reflects repeat offenders.  They would make a boatload of cash if they increased the amount of first-offender convictions, as that would statistically rase the rates of non-recidivism.

Yep.

[BabylonHoruv]

Will this have any particular impact on what happens if the board members/management of goldman sachs end up in New York city jails?

[The Wizard Joseph]

I did some digging and can't seem to find a reference to the time terms of the bond. That is to say how long they have to reduce said recidivism rates. I'd really like to know what kind of return on investment over time they expect. The possibility of failure that will cost up to $2.4mil over a possible $2.1mil max profit seems like a big fat risk. I know it's just a relatively small pilot program, but I'm sure the real lucre they want is control in the long term.  If this program is successful they'll likely get quite a bit of it!

Also:
Philanthropy works just fine without a profit motive GODDAMNIT! 

And:
Babbsy, GO fuck a corpse sweetie. Relevant spags are trying to talk like adults here.

[BabylonHoruv]

I did some digging and can't seem to find a reference to the time terms of the bond. That is to say how long they have to reduce said recidivism rates. I'd really like to know what kind of return on investment over time they expect. The possibility of failure that will cost up to $2.4mil over a possible $2.1mil max profit seems like a big fat risk. I know it's just a relatively small pilot program, but I'm sure the real lucre they want is control in the long term.  If this program is successful they'll likely get quite a bit of it!

Also:
Philanthropy works just fine without a profit motive GODDAMNIT! 

And:
Babbsy, GO fuck a corpse sweetie. Relevant spags are trying to talk like adults here.

Volunteering are you?  I'm sure the derail is appreciated (and will probably be jumped on by a few others)  I'm sure there are others who wont jump on it who could give you lessons in acting like an adult.

In regards to the actual meat of your post, Goldman Sachs doesn't make stupid investments, risky ones yes, stupid ones no, if the potential for loss is greater than that for profit than someone else is going to be paying the losses. 

Philathropy doesn't work very well at all without a profit motive in our current system.  Philanthropy without profit is a brief act of good that dies out, without making any real ripples.  Not that there is any real philanthropy in anything GS does mind you.

[East Coast Hustle]

It is a testament to my benevolent and reasonable nature that you haven't become the first and only person ever banned from PD merely for being so completely objectionable a person. Now please go back to shutting up.