Economic Impact

…Taxes, public safety, education in public schools, transportation and many other services are affected by high recidivism rates, mass incarceration and long term poverty.

Creating just 100 jobs for this population would have an enormous positive economic impact on participants, communities and city and state budgets.  Millions of dollars can be saved in state budgets for incarceration costs.  New taxpayers are created instead of repeat offenders.   Every job created would help reduce crime.  “Nothing stops a bullet like a job”  (Father Greg, Founder of Homeboy Industries,  Los Angeles, Ca)

Job creation for this population would reduce the need for local government subsidies and increase local spending for goods and services.  The following is a basic example of the economic impact of just 100 jobs created.

 

Direct and Indirect Cost of Incarceration – Per Person  (all cost not included)

Annual Cost Of Bed Per Inmate:                                                 31,286

Lost Wages Due To Incarceration:                                              8,737

Total Direct Costs:                                                                40,023
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Indirect Costs:

Lost Child Support-1 year                                                           2,849

Foster Care                                                                             21,902

Total Indirect Costs:                                                             24,751
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Lost Federal/ State Income                                                            893

Lost Payroll Tax (Social Security,                                                1,337

Lost Federal Unemployment                                                           84

Lost State Unemployment                                                              64

Total Lost Federal and State Income                                   2,378
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Total annual cost of incarceration per person:                  67,152

 Multiply   x  100 people:                                                6,715,200

 

Purchasing power generated from employment:  The first 100 jobs initiative:

19,200 annual/per person starting salary  x  100 people = 1,920,000 paid directly into at risk communities per year in the form of paychecks.

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