[isolli]

I think both points, while reasonable, are wrong.

If memory serves, the rise in incarceration rates can be traced back to the failed war on drugs, which incarcerated many non-violent (often black) offenders. There is also a tough-on-crime stance, in part due to the fact that US sheriffs and judges compete in local elections, leading to aberrations such as mandatory minimum sentencing.

As for health spending, a lot of the spending can be traced to inefficiencies, and predatory pricing by hospitals, drug companies, and medical device manufacturer. The lack of centralized information for insurance and payments (note that I don't blame insurers) also creates huge administrative costs.

Those are both complex topics, so I don't claim to have captured all aspects, and I may have some of the details wrong, but I would say it's a good first approximation.