On the second point, I think folks are rightly dubious about the effectiveness of incentives broadly[1]. There's also some hilarious historical examples of incentives backfiring or having unwanted side-effects (like the Cobra Effect [2].)
More broadly, I don't think it's that easy to think that private prisons can even work well as a solution, regardless of whether they should be allowed to exist as a matter of public policy and ethics. Consider one summative look at this issue provided in this evaluation[3] -- it's dubious whether they're even cost effective, one of the strongest pro-private-prison arguments there has been in public debate, and how there's much better alternatives than the kind of perverse incentives bundled with private prisons, like re-evaluating whether parolees should be allowed in public housing, and providing more transition housing so when sentences are complete, inmates aren't forced to spend even more time in prison because they don't have an address to go to.
More broadly, I don't think it's that easy to think that private prisons can even work well as a solution, regardless of whether they should be allowed to exist as a matter of public policy and ethics. Consider one summative look at this issue provided in this evaluation[3] -- it's dubious whether they're even cost effective, one of the strongest pro-private-prison arguments there has been in public debate, and how there's much better alternatives than the kind of perverse incentives bundled with private prisons, like re-evaluating whether parolees should be allowed in public housing, and providing more transition housing so when sentences are complete, inmates aren't forced to spend even more time in prison because they don't have an address to go to.
[1] https://hbr.org/2009/03/when-economic-incentives-backfire [2] https://en.wikipedia.org/wiki/Cobra_effect [3] https://publicpolicy.wharton.upenn.edu/live/news/2304-privat...