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NASA recently forged an agreement with San Quentin State Prison in California that will put its inmates to work building Poly Picosatellite Orbital Deployers (PPODs), reports Space.com. The PPODs are used to mount tiny cubestats satellites onto space vehicles that launch them into orbit around the planet
As long as prisoners are working for government outfits (thus the taxpayer), then I am ok with it. It's nice that they can put their time and energy towards something positive, educational, and helpful.
What really bothers me is contracting prisoners to private business for profit. There's no need for that when there are plenty of public services that are in need of help. They do owe a debt to society, after all.