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RE: The best way to reduce the cost of prisons is by encouraging inmates to lower the cost of their incarceration
I would say we should first address the use of prison systems as a corporate for-profit. https://www.washingtonpost.com/posteverything/wp/2015/04/28/how-for-profit-prisons-have-become-the-biggest-lobby-no-one-is-talking-about/
Edit: Posted link to be used only as an example.
We only have state run and county run prisons. If we were looking for lowest cost only and warehousing, private prisons are cheaper.