Do you mean that the benefit of cheap labor goes to private companies, but the cost stays with the taxpayers? If so, I see the logic. If we are talking about imprisoning someone, because we get cheaper labor for example inside the prison, than that doesn't make sense. Of course I count that the job needs to be done.

Scenario A (person not imprisoned):

- Prison cost: $0

- Labor cost: $25k (hire someone)

- Total cost: $25k

Scenario B (person imprisoned):

- Prison cost: $50k

- Labor cost: $0 (prisoner does it)

- Total cost: $50k