According to a study, two thirds of the world’s incarcerated population are pretrial detainees. This is bad for the economy because it hinders these people’s labor market activities. According to a report by the ACLU, 70% of detainees in America’s jails are ‘yet to be convicted for a crime.’
Monetary bail is a key player in this system. The families of detainees have two options if they can’t pay the hefty amount needed to post bail. They can either see their loved one stay behind bars till they get convicted, or approach a bail agent for a bail bond. How does this bolster the economy? Let’s find out.
How do bail bonds work?
When someone is unable to post bail on their own, they get in touch with a bail agency. These companies sell surety bonds to the person who has been accused. The bail bonds company sells this bond as a guarantee that the accused will face the court if they’re summoned. The bail bond is often secured against some collateral. The accused also appoints a cosigner. The company then pays the court some portion of the bail amount and guarantees that the accused will appear for their hearing. The company also takes an undertaking that the rest of the bail amount will be paid if the accuser fails to present themselves.
How does this help the economy?
The entire concept of bail agencies helps the economy in two ways:
- Economic saving: the amount which the accused pays to the agency is far less than what they would have been asked to pay by the judge for their pretrial bail. If the concept of bail bonds didn’t exist, the accused would have been required to pay hefty amounts. This is an unfair exhaustion of resources which could have been invested elsewhere. Bail bonds allow dollars to be utilized where they will bear some fruit. The accused have families, after all, and they spend years saving up for investing in homebuilding, education, and community building.
- Employment opportunities: The US unemployment rate stood at 8% in March 2019. Unemployment leads to stress, and represents an overall decline in productivity. Just like every stakeholder in the service industry, a bail bond agency also hires people for a bunch of different positions. There are legal consultants, representatives who get in touch with the courts on your behalf, and financial managers. The agency gives them a monthly paycheck in return for their services, which is a constructive use of their abilities.
If you’re looking for a bail agency in Indiana, get in touch with DeLaughter Bail Bonds. We are a family-owned business and our services are available for 24 hours, 7 days a week. We serve various locations in Indiana, including Whitley County. To get in touch, contact us online.