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California Prison Industries Pump Millions Into State Economy
By KCBS
Published: 05/20/2002

A new report from UC-Berkeley says products produced by California's prisoners have a multi-million dollar ripple effect on the state's economy. KCBS Reporter Jerry Wilcox says the prisoners produce a wide variety of products including American flags, license plates, farm products, eyeglasses, and clothing. 
UC-Berkeley economist George Goldman says the economic impact of what the inmates generate amounts to 151-million dollars a year in direct sales and spin off effects of 230-million dollars. 
'When the prisoners are making their products they have to buy supplies within California and that produces the ripple effects because they're purchasing products from different industries and services within California, and that money ripples out,' said Goldman. He says those purchases created three-thousand jobs statewide. 
The prisoners make from 30 to 95 cents an hour for their work, and up to 20 percent of their wages are transferred to the Crime Victims Restitution Fund. 


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