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Thu Aug 2, 2012, 12:49 PM

Goldman to Invest in City Jail Program, Profiting if Recidivism Falls Sharply

Source: The New York Times

If the jail program does not succeed, MDRC can use the Bloomberg money to repay Goldman a portion of its loan; if the program does succeed, Goldman will be paid by the city’s Department of Correction, and MDRC may use the Bloomberg money for other social impact bonds, said James Anderson, director of the foundation’s government innovation program.

Jeffrey B. Liebman, a professor of public policy at Harvard University who has written about social impact bonds, said the New York contract would be widely scrutinized.

“This will get attention as perhaps the most interesting government contract written anywhere in the world this year,” Dr. Liebman said. “People will study the contract terms, and the New York City deal will become a model for other jurisdictions.”

But social impact bonds have also worried some people in the nonprofit and philanthropy field, who say monetary incentives could distort the programs or their evaluations.

“I’m not saying that the market is evil,” said Mark Rosenman, a professor emeritus at Union Institute and University in Cincinnati, “but I am saying when we get into a situation where we are encouraging investment in order to generate private profit as a substitute for government responsibility, we’re making a big mistake.”



Read more: http://www.nytimes.com/2012/08/02/nyregion/goldman-to-invest-in-new-york-city-jail-program.html?emc=eta1



Not much information provided about the "Adolescent Behavioral Learning Experience " (ABLE), other than it's part of the Bloomberg Administration’s year-old "Young Men’s Initiative."

More about the "Young Men's Initiative" here:
http://www.nyc.gov/portal/site/nycgov/menuitem.c0935b9a57bb4ef3daf2f1c701c789a0/index.jsp?pageID=mayor_press_release&catID=1194&doc_name=http%3A%2F%2Fwww.nyc.gov%2Fhtml%2Fom%2Fhtml%2F2011b%2Fpr282-11.html&cc=unused1978&rc=1194&ndi=1

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Reply Goldman to Invest in City Jail Program, Profiting if Recidivism Falls Sharply (Original post)
KansDem Aug 2012 OP
woo me with science Aug 2012 #1
JDPriestly Aug 2012 #2
midnight Aug 2012 #6
cyberpj Aug 2012 #3
alcibiades_mystery Aug 2012 #4
midnight Aug 2012 #5
Smilo Aug 2012 #7

Response to KansDem (Original post)

Thu Aug 2, 2012, 12:56 PM

1. Imprisonment of human beings

should never have anything to do with profit. Period.

"I’m not saying that the market is evil,”.....

We should all be saying it. It's evil.


Had enough of corporate evil yet, America?

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Response to KansDem (Original post)

Thu Aug 2, 2012, 12:58 PM

2. Goldman execs are just buying their retirement homes.

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Response to JDPriestly (Reply #2)

Thu Aug 2, 2012, 06:45 PM

6. Now... that would truly be poetic justice!

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Response to KansDem (Original post)

Thu Aug 2, 2012, 06:27 PM

3. Yah THINK?

snip-

“I’m not saying that the market is evil,” said Mark Rosenman, a professor emeritus at Union Institute and University in Cincinnati, “but I am saying when we get into a situation where we are encouraging investment in order to generate private profit as a substitute for government responsibility, we’re making a big mistake.”


(See US Healthcare System.)

(See also Ongoing Destruction of USPS, Social Security and Medicare, and Public Education.)



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Response to KansDem (Original post)

Thu Aug 2, 2012, 06:29 PM

4. No worries...they'll just hedge the other side through a derivative

They'll make money whether recidivism increases or decreases. Indeed, they probably have a stronger position on more recidivism, while this is the "social" hedge.

If it's Goldman, you can bet that they're doing something deeply evil.

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Response to KansDem (Original post)

Thu Aug 2, 2012, 06:43 PM

5. This program sounds like an ALEC euphemism for something else...

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Response to KansDem (Original post)

Fri Aug 3, 2012, 12:32 AM

7. This is so wrong............

it should be the execs of Goldman Sachs behind bars.

Talk about fox guarding the hen house - may be this will serve as Goldman Sach's HR/recruitment center.

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