Private Prisons & Wall St. Profits: Corrections Corp Of America (CXW), The Boeing Company (BA)

Currently 37 states have legalized prison slave labor. Here is a partial list of companies who benefit from prison indentured servitude: IBM, Dell, AT&T, Compaq, Hewlett-Packard, Revlon, Nortel, Unicor, Victoria Secret and The Boeing Company (NYSE:BA). Forget China, the United States has now become a great place to invest for cheap goods due to the massive prison population. Investors can now get cheap labor from pennies per hour up to $1.50 per hour.

With inmates working for next to nothing the U.S. should be out of its recession in record time. The Boeing Company (NYSE:BA) previous close was $85.18 for March 18, 2013. The Boeing Company (NYSE:BA) owns MicroJet, a wholly owned front company that manufacturers airplane parts in the private prison system. Boeing paid prisoners from less than $1 per hour up to $7 per hour compared to the more than $30 per hour for a qualified machinist. This decision does not give me confidence in traveling overseas on airplanes with parts manufactured by disgruntled inmates. Inmates do not take pride in their work, especially working for pennies on the dollar.

The Boeing Company (NYSE:BA) is a great stock purchase as far as I am concerned. Revenue has steadily increased from $64.31 Billion in 2010 to $81.70 Billion in 2012. The average The Boeing Company (NYSE:BA) machinist earns $32 per hour. Hiring inmates under MicroJet to do the same job as a qualified machinist for pennies on the dollar results in future earnings per share increasing steadily. Previous earnings per share increased from $4.49 in 2010 to $5.16 in 2012.

The future looks bright for The Boeing Company (NYSE:BA) who signed an order for 175 single aisle 737s for the European low cost airliner Ryanair. This deal is worth $15.6 Billion.

Author-Robert Palmer
Blog: nakedtruthfinance.com

The article Private Prisons & Wall St. Profits originally appeared on Fool.com and is written by Robert Palmer.

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