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freakonomics.com
Episode Transcript
Hey there, it’s Stephen Dubner, and today we’ve got a bonus episode
for you — it’s an episode of another show in our network: The
Economics of Everyday Things, which is hosted by Zachary Crockett.
In the past, Zachary and his team have made episodes about Michelin
stars, snake venom, and prosthetic limbs. Today, they bring us their
reporting on highway signs and prison labor. If you like this episode,
be sure to follow the show on your podcast app; again, it’s called The
Economics of Everyday Things. And let us know what you think. Our
email is radio@freakonomics.com. Okay, here’s Zachary Crockett.
* * *
Inside the plant, workers are busy shearing giant aluminum panels,
cutting sheets of green adhesive, and measuring out the spacing
between letters. And outside in the shipping yard, the plant’s general
manager, Lee Blackman, is admiring a row of completed products.
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This facility makes all kinds of road signs: stop signs, yield signs,
construction signs. But its biggest products — both by size and
revenue — are those huge green signs that loom over you on the
highway.
Signs like this are all over American highways and freeways. There
are literally millions of them, and they’re so familiar that many of us
don’t stop to think about where they come from — or why they look the
way they do. Behind every highway sign, there’s a long and winding
road of economic decision-making.
* * *
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HAWKINS: The vehicles back then would not be used to travel long
distances anyway. As the ability to travel longer distances increased,
they created these trail systems, which were typically run by trail
associations.
HAWKINS: I’ve seen pictures of stop signs that looked like coffins,
signs with skull and crossbones on them.
As people started driving further and crossing state lines, they didn’t
know how to interpret all the markers they saw.
HAWKINS: The MUTCD gets into issues such as the design of the
signs. Typically we’ll give some indication on when or how to use the
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device.
Guide signs are those enormous placards on the freeway that tell you
which exits, or intersecting highways, are coming up, and how far
away they are. And everything you see on one of these signs is a
calculated decision, starting with the font. Most signs use a special
sans-serif typeface that’s unofficially called Highway Gothic. It’s
almost exclusively designed for highway signage.
The words on these guide signs are almost always set in mixed case,
with initial capitals followed by lowercase letters. There’s a good
reason for that.
HAWKINS: If you know what city name or street name you’re looking
for, you could recognize that it was on a sign even before you could
read it, when it’s mixed case. For example, my name, Hawkins — the
H sticks up, and the K sticks up. The word English — the E sticks up,
the G descends and the L sticks up. So if you’re looking for the city
“Hawkins” or the road “English,” you have a shape that you’re
expecting to see, and you can see that shape from further away than
you can actually read the letters. And that was recognized as a real
advantage when the traffic is moving at 70 miles an hour.
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There are also guidelines around the size of the font on highway
signs. And from below, it’s hard to grasp just how big the characters
are.
Then, there’s the color of the sign. In the 1950s, the federal
government looked into the legibility of black, blue, and green signs.
Officials staged a test with hundreds of motorists on a road in New
York and found that 58 percent of drivers preferred green. Turns out,
the color green has another benefit, too. It provides the best base for
retroreflectivity — basically, what makes signs legible when they’re
illuminated by a car’s headlights in the dark. The reflectivity of signs
has come a long way. Engineers initially used something called cat’s
eyes — tiny marbles embedded in each letter on the sign. These have
since been replaced by reflective sheeting that covers the whole sign.
Now, not every sign on the freeway is green. Some of them are brown.
Those are typically used for tourist attractions, or recreation points, like
state parks. And every now and then, you’ll also see a blue sign full of
corporate logos. Those are called service signs, and their purpose is
to tell you what kinds of services and businesses are coming up —
say, a Chevron gas station in 2 miles, or an Arby’s at the next exit.
These are actually ads, and businesses pay for the real estate.
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goes out and collects money from those businesses that want to put a
logo. And sometimes they have to do a lottery. Sometimes it’s a
bidding process.
But most highway signs aren’t lucrative for the public entities
responsible for them. Making them is an intensive and costly
endeavor. There are dozens of companies that make the smaller
ones, like stop signs or speed limit signs. But few manufacturers are
capable of producing the enormous green highway guide signs.
When a state transportation department needs a new one, the job
goes to someone like Renee Roach.
Most highway signs have a sticker on the back with the dates that it
was manufactured and installed. Roach knows exactly how long
every sign has been on the highway, and when it probably needs to be
replaced. A good sign might last anywhere from 12 to 20 years before
the natural elements start to degrade it. But sometimes, replacements
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ROACH: The vast majority of our signs are coming through Bunn.
In North Carolina, nearly every highway sign in the state comes from
the sign plant in the small town of Bunn. That’s why we took a trip out
there to see the manufacturing process for ourselves.
BLACKMAN: Yes, it is. It’s pretty awesome. When we get out in the
yard, I’ll show you some really big signs.
BLACKMAN: That’s got the exact specifications that D.O.T. wants for
this sign, the type of sheeting, the color of sheeting, the overlays. So
this routing sheet is going to follow this sign all through the process.
The first step of the fabrication process is selecting the right kind of
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The workers haul these huge sheets over to the shearing department,
where they’re cut to size. Sometimes, signs are so big that they have
to be split up into as many as 14 different panels.
BLACKMAN: When the contractor gets it out on the job site, they’ll put
it together like a puzzle.
BLACKMAN: There’s no paint on the sign — it’s all sheeting and it’s all
translucent ink. This piece of equipment is called the squeeze-roll
applicator — the machine is set to a specific pressure, and that will
directly apply the sheeting to the piece of metal.
Then comes one of the more technical parts of the job: putting the
letters on the sign. For large highway signs, each letter is printed
individually and placed by hand according to very strict
measurements.
BLACKMAN: What he’s doing now is he’s spacing out the horizontal
measurements for the line of copy. He knows how far from the bottom
these letters are going to be, how far from the top, and he’s setting all
that up. He’s going to handle every one of these letters individually. It
tells you the exact distance from one letter to the next, from the edge
of the sign coming up to the first letter.
BLACKMAN: You know the spacing, the different size fonts. And that
determines too: you know, bigger sign, bigger fonts, smaller sign,
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From start to finish, it can take around 12 hours to finish a single large
highway guide sign. Once a sign is done, it’s taken out into the storage
yard. There, racks upon racks of enormous highway signs are lined
up, to get transported all over the state of North Carolina.
But there’s a catch that saves the state of a ton of money. The Bunn
sign plant is located inside a prison that’s staffed by incarcerated
individuals. And that allows Renee Roach to get a good deal on signs.
ROACH: They can generate a lot of those signs really quickly for a
fairly inexpensive price.
This isn’t unique to North Carolina. Most states across America use
prison labor to make stuff — not necessarily highway signs, but a
variety of products all around us.
* * *
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hygiene together.
BARNES: I work at EG sheeting, I sheet the metal and trim it, and get
it ready for screening. I’ve been in that department the whole time I’ve
been down here.
BARNES: My family, they be like: “What you doing in the sign plant?”
and I tell them, I make the signs in the streets. It’s like: “Wow, I thought
somebody else did that.”
This isn’t any sign plant. It’s located inside Franklin Correctional
Center, a medium-security prison in Bunn, North Carolina. And
Barnes is serving a life sentence for first-degree murder. He’s one of
around 800,000 incarcerated people with jobs in America’s prison
system. They grow crops, repair roads, fight wildfires — and
manufacture a surprising number of the products we encounter in
daily life, from office furniture to reading glasses. It’s estimated that
more than $11 billion dollars’ worth of goods and services every year
can be traced back to workers who are mostly paid pennies per hour
for their labor, or even nothing at all. We wanted to learn more about
how prison labor became a central part of the economy. And we found
out that the story goes back to the founding of our country. Around the
world, work has long been used as a form of punishment. The U.S.
colonies under British rule were no exception. Britain shipped over
criminals and sold them to farms in Virginia and Maryland. They
worked in the fields alongside enslaved people. And, together, their
labor sustained our early agrarian economy. As America’s justice
system evolved, we began to send convicts to prisons.
APPLEMAN: You don’t really see the first prison labor until the
beginning of the 19th century.
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When the 13th Amendment was passed after the Civil War, banning
slavery and other forms of unpaid labor, a notable exception was
carved out.
APPLEMAN: Things didn’t really start going into the big time until the
’80s, ’90s. When mass incarceration really started booming, costs
skyrocketed. And prison labor is the way that government is trying to
pay for it.
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At the majority of prisons, you’ll find them doing a lot of the internal
labor — they cook the meals in the cafeteria, do laundry, clean the
buildings, and maintain the grounds. But they also work in
government-run prison factories, like the sign plant at Franklin
Correctional Center. Louis Southall is the prison warden. He oversees
the 300 incarcerated men who live there.
SOUTHALL: We’ve had offenders here from DUIs all the way up to
incarcerated for taking someone’s life.
Almost all of those men have a job, whether it’s sweeping floors or
mowing the lawns. But according to Southall, only the best workers
get to work in the sign plant.
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canned peas and beef patties for prison cafeterias. They manufacture
air fresheners, hand soap, motor oil, prescription glasses, picnic
tables, and license plates. Last year, Correction Enterprises sold $121
million dollars’ worth of goods. Almost all of those sales were to
government agencies in the state of North Carolina — many of which
are required to shop through the company.
For incarcerated workers, pay depends on the type of job they have,
and where they work. Most jobs pay somewhere between 13 cents
and 52 cents an hour. In some states, like Kansas, prisoners are paid
around five cents an hour. And in others, like Alabama and
Mississippi, prison jobs don’t pay at all.
APPLEMAN: All states are in on this, and it’s a great source of very
low-cost labor.
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Federal prisons have their own system for taking advantage of cheap
labor. The government-owned Federal Prison Industries, or FPI, has
more than 60 work facilities across the country. It manufactures
around 300 products — boots, jumpsuits, tools, medical supplies,
body armor — even electronic components for guided missiles, which
it sells to the Department of Defense. But prisoners don’t just do work
for the government. Sometimes, the state leases out their labor to
companies in the private sector.
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release prisoners. All of this makes prison labor a great deal for
taxpayers, governments, and private businesses. And the idea is that
prisoners gain key skills.
Brian SCOTT: I can remember being given some of the most tedious
jobs just to keep me busy.
* * *
Brian Scott served 20 years in prison for a sex crime before being
released in 2021. For most of that time, he was at the Nash
Correctional Institution in North Carolina. And he was working at a
printing facility run by Correction Enterprises.
CROCKETT: I read on the site that they even did report cards there
for high schools and colleges.
SCOTT: Yes, and the temporary tags that you get when you purchase
a new vehicle.
The printing facility was staffed by around 130 prisoners. And the day-
to-day work was similar to what employees at any other printing facility
would do. Except, in exchange for his labor, Scott was only paid 26
cents an hour.
SCOTT: You actually started at $0.13 and then there was a raise that
you got pretty soon to $0.20. And then, you know, the $0.26 was when
you were actually operating a machine or a computer. The crazy thing
is it was actually one of the higher-paying jobs. There were many
people working back in the dorms pushing brooms or whatever, and
they were making, you know, anywhere from $0.40 a day to maybe a
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SCOTT: There were some individuals who would have some of their
pay taken out because they had received a lot of write-ups, or they
had some court- appointed fees. A write up was $10. But when you’re
only making $15 and they take $10, it hurts.
Scott says many people with prison jobs took on side hustles to
supplement their income.
SCOTT: I don’t know how many green peppers I bought from guys
who worked in the chow hall. That was the way that they tried to
compensate for the pennies that they were being paid. We had
people who would draw a picture of your child or your spouse, and
you would pay them a fee for that.
Scott had an operation making incense sticks in his cell. He’d sell
them for one postage stamp, which was a form of currency behind
bars.
SCOTT: The process was you would get the stick off of a broom, you
would take one little square of toilet paper, which the state provided.
You would wrap it around the stick, you would get it damp. And then
you would roll it in the sage — that had to come out of the chow hall.
They would sell little bottles of oil in the canteen and I would dab it on
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the whole stick, let it dry. And there you go — you’ve got an incense
stick.
Aside from the pay, Scott says his time at the printing plant was a
tolerable experience. But, toward the end of his sentence, he was
transferred to another Correction Enterprises facility, where he
refurbished traffic signs. And that was a different story.
SCOTT: It really was a horrible place. Nobody liked being there. It was
off-site, so you got bused to this location, bused back in. And every
day when you came back, you had to go through a full strip search.
Because the labor is so cheap they would have more people than
they actually needed. I can remember being given some of the most
tedious jobs just to keep me busy. There was a building that we had to
pressure-wash during the winter. There were picnic tables outside
that we had to chip all the paint off of.
The people who run prison labor programs often say that working at
their facilities is a choice — and that if a prisoner doesn’t like a certain
job, they’re free to find other work inside the prison. But this freedom
often comes with a catch. The New York Times recently reported that
prisoners in an Alabama facility who refuse to take on work-release
jobs often face disciplinary action. Again, here’s law professor Laura
Appleman.
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them down the line. Work programs are often positioned as a solution
to recidivism — the tendency of convicted criminals to reoffend. The
idea is that the skills you learn on the inside will help you land on your
feet once you’re out. Lee Blackman, of Correction Enterprises, made
that point during a walkthrough of the sign plant in North Carolina.
BLACKMAN: We can take these men, and we teach them. And once
they start doing the job, they’re figuring out, “Hey, I can do this.” They
start believing in themselves. They got the confidence. They know
they can do that job. And they can walk into a prospective employer
and say, “Let me show you what I can do.”
The evidence that prison labor helps incarcerated people find jobs
once they’re back out in the real world is mixed. Many companies
won’t even consider hiring people with felony convictions, and more
than 60 percent of people who are released from prison are
unemployed a year later. But, it does work out for some people.
Including Brian Scott. After he was released in 2021, he quickly found
a civilian job in the printing industry.
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* * *
Hey there, it’s Stephen Dubner again. I hope you enjoyed this special
episode of The Economics of Everyday Things, with Zachary
Crockett. I hope you liked it enough to follow the show on your podcast
app. We’ll be back very soon with a new episode of Freakonomics
Radio — although for the new year, we’re switching our regular
publication schedule from Wednesday night, Eastern Time, to early
Friday morning. So if you’re an early downloader — which I know you
are — and you aren’t seeing the episode on Wednesday night, don’t
freak out! We’ll be there on Friday. Until then, take care of yourself
and, if you can, someone else too.
* * *
SCOTT: I guarantee you there are stamps floating around the system
that were purchased 25 years ago.
Sources
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Renee Roach, state signing and delineation engineer for the North
Carolina Department of Transportation.
Resources
Correction Enterprises.
Episode Video
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