L1 This costs taxpayers an estimated $18 billion each year. More than two thirds of the states are facing serious overcrowding problems and many are operating at least 50 percent over capacity (Joel, 1988). Private prisons may be for profit but if the private prisons can solve the issue of cost then it may be a better option than what is currently in place. Cost is one of the main issues that push the reason for private prisons. The cost has the potential to be much lower if run by private prisons than in govemment run facilities