In the United States, a system of modern peonage – essentially, a government-run loan shark operation – has been going on for years. Beginning in the 1990s, the country adopted a set of criminal justice strategies that punish poor people for their poverty. Right now in America, 10 million people, representing two-thirds of all current and former offenders in the country, owe governments a total of $50bn in accumulated fines, fees and other impositions.
There are varied people who have given this warning. Perhaps it’s time to dust down the Mancur Olson again?