The effect of Donald Trump’s election as President of the United States is already starting to surface in some industries.
According to Bloomberg, the Corrections Corporations of America – the parent company for thousands of the country’s privately run prisons – saw an estimated 60 percent increase in their stocks by 10:14 a.m. on Wednesday. Private prisons were on the outs under orders from the Justice Department as mandated by President Obama earlier this year, but analysts note that a Trump presidency will likely result in that decision being overturned.
“Private prisons would likely be a clear winner under Trump, as his administration will likely rescind the DOJ’s contract phase-out and ICE capacity to house detainees will come under further stress,” an analyst from Heights Security, LLC said in findings published early Wednesday morning. The report further highlighted the link between immigration and the prison system, emphasizing the challenges ahead for U.S. prisons if Trump’s planned immigration enforcement policies are implemented.
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Noting the National Immigration and Customs Enforcement Council’s endorsement of Trump earlier in the year, the findings also point out how Trump’s favorable relationship with the council serves as a clear indicator that the reversal of Obama’s private prison shutdown mandate is highly likely once Trump officially takes office next year.