Cheaper than Chinese labor

Here is a quote from The Urban politico that describes how the American taxpayer subsidizes companies and cuts pay to American workers

US Technologies, an Austin, Texas based company, who closed their doors and laid off hundreds of employees only to ship their jobs, not overseas, but to the nearest Austin, Texas Prison, where inmates work for cents a day. Many companies have begun using prison labor, such as Chevron, IBM, Motorola, Compaq, Texas Instruments, Honeywell, Microsoft, Victoria’s Secret and Boeing. You may have had firsthand experience dealing with the hardest of criminals if you have ever called TWA to book a flight. That’s right folks; TWA uses prison inmates to book flights. Even federal prisons have gotten a piece of the action, a company under the trade name Unicor uses prisoners to make everything from lawn furniture to congressional desks. Their web site proudly displays “where the government shops first.” For private corporations, prison labor is pure gold. With prison labor there are no unions, no strikes, no insurance benefits, and no rights! This is even backed up by the 13th Amendment of the United States Constitution. State Corrections agencies are even advertising their prisoners to corporations by asking them questions such as: “Are you experiencing high employee turnover? Worried about the cost of employee benefits? Getting hit by overseas competition? Then the Washington State Department of Corrections Private Sector Partnerships is for you.”

[Suppose] An American worker, who once upon a time made $8/hour, loses his job when the company relocates overseas where workers are paid only $2/day. Unemployed, and alienated from society indifferent to his plight, he becomes involved in the drug economy or some other outlawed means of survival. He is arrested, put in prison, and put to work. His new salary: 22 cents/hour.

http://www.theurbanpolitico.com/2010/05/unmasking-prison-industrial-complex.html