By C1 Staff
NEW YORK — Corrections Corporations of America and GEO Group have both suffered large declines in stock over the last few months, partly due to the Justice Department’s decision to end the federal use of private prisons.
After the private prison decision became public in August, stocks declined greatly, CNBC reported. Analysts questioned how feasible it would be for the government to build new housing for displaced prisoners.
Hillary Clinton supported the end of private prison use, also contributing to the decline.
“I’m glad that we’re ending private prisons in the federal system,” Clinton said. “I want to see them ended in the state system. You shouldn’t have a profit motivation to fill prison cells with young Americans.”
But Wednesday, both stocks saw an increase after Donald Trump won the presidency and Republicans took control of Congress, the publication reported.
Corrections Corporation rose 43 percent and GEO increased more than 21 percent.