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By the time of the discovery of America, ancient punishments, originally reserved for slaves, had long been in effect as acceptable legal punishments for criminals. The first US prisons were built in the 18th century in the populous states of New York, Massachusetts and Pennsylvania. Labor was integrated with penitence in order to serve as reform for criminals, but ultimately to serve the goal of economic upkeep. By 1828, prison industry was so prominent that inmates were actually "paying" for their own confinement. This was the beginning of prison industry. Soon after, reformers felt that prison industry would be more effective, both economically and as a form of rehabilitation, if the inmates were given incentives to work hard. Hence, the institution of the "good time" law, which rewarded inmates for both good behavior and work that they had done. In 1829, the prevalence of prison industry led to a number of reforms and a formalization of the system. The question of who should benefit from inmate labor arose and brought about a battle between public and private industries. Seeing as prison industry put forth a cheap form of labor, competitive with free labor, both sides wanted to reap the benefits. But, between the late 1890's and the early 1900's, there was a strong political reaction to the abuses of prison labor. In 1905, President Roosevelt signed an executive order prohibiting the federal government from purchasing prison-made goods. By 1929, the private benefit, known as the contract system, was outlawed both in the Federal Prison System and in 17 state governments. The Great Depression also put an exhaustive strain on prison industry due to high unemployment levels throughout the country. The argument consisted of unfair competition for free laborers. During this period, between the 1890's and 1980's, prison industry was on a major decline from 85% of the inmate population to about 44% by 1940. It was not until 1967 that prison industry began to rise again. It was reintroduced for its rehabilitative qualities. Since then, prison industry has slowly risen in popularity, especially increasing after the mid 1980's and has made a permanent imprint on the American justice system.
Roman Laborers: Slaves In antiquity, slavery had an immense impact on the economic status of ancient societies and institutions. The most important of which, concerns the modern penal system. To the Romans, slavery was a normal institution of society, sanctioned by universal usage. Gally slaves, common in Imperial Rome were a precursor to more modern-day inmate road gangs, "Chain Gangs". Slaves of the Empire were commonly drawn from war prisoners or citizens who had committed crimes. The evolution of the Penal System, during the early Empire of Rome, allowed for the common usage of slavery as punishment for years to come.

By the time of the discovery of America, ancient punishments, originally reserved for slaves, had long been in effect as acceptable legal punishments for criminals. The first US prisons were built in the 18th century in the populous states of New York, Massachusetts and Pennsylvania. Labor was integrated with penitence in order to serve as reform for criminals, but ultimately to serve the goal of economic upkeep. By 1828, prison industry was so prominent that inmates were actually "paying" for their own confinement. This was the beginning of prison industry. Soon after, reformers felt that prison industry would be more effective, both economically and as a form of rehabilitation, if the inmates were given incentives to work hard. Hence, the institution of the "good time" law, which rewarded inmates for both good behavior and work that they had done.

In 1829, the prevalence of prison industry led to a number of reforms and a formalization of the system. The question of who should benefit from inmate labor arose and brought about a battle between public and private industries. Seeing as prison industry put forth a cheap form of labor, competitive with free labor, both sides wanted to reap the benefits. But, between the late 1890's and the early 1900's, there was a strong political reaction to the abuses of prison labor. In 1905, President Roosevelt signed an executive order prohibiting the federal government from purchasing prison-made goods. By 1929, the private benefit, known as the contract system, was outlawed both in the Federal Prison System and in 17 state governments. The Great Depression also put an exhaustive strain on prison industry due to high unemployment levels throughout the country. The argument consisted of unfair competition for free laborers. During this period, between the 1890's and 1980's, prison industry was on a major decline from 85% of the inmate population to about 44% by 1940. It was not until 1967 that prison industry began to rise again. It was reintroduced for its rehabilitative qualities. Since then, prison industry has slowly risen in popularity, especially increasing after the mid 1980's and has made a permanent imprint on the American justice system.