2. A huge and expensive tragedy of justice and of economic policy. Imprisoning people for non-violent drug charges takes what are often productively employed people out of the work force and turns them into a unit of negative productivity, taking with them, probably another additional person by the time you account for all of the officers and support staff needed for running a huge prison infrastructure. People imprisoned even for drug charges rarely re-enter the workforce, at least not at any reasonable level. After release, they are stigmatized and often victimized again through various ex-con hire subsidy programs.
Anecdote/heresay: There is just such an employer in my town. They treat regular employees pretty badly, and Project RIO types, even worse. These poor guys don't make enough to support themselves, and thus have low/no job mobility. They all live in a gov't housing thing, on the wrong side of the tracks. They are pretty much destined to fail.