[noloqy]

True - you would have to set rules in place that would prevent any kind of incentive for increased occupancy, and then create government bodies that enforce these rules. Also, you would have to set rules in place for many kinds of standards for living conditions for inmates, and set up bodies that enforce those as well.

The thing is that when commercial incentives come into play, companies will go out of their way to find ways to increase profits. Privatization essentially starts a race to the bottom; a race that can only be slowed down by regulatory institutions. In the end, the company always wins and society loses. Banks have showed us that.