The prison system was not privatized in the US. Some places do have private prison but it is by no means the norm. As of 2012 less than 8% of the 2.2 million incarcerated persons in the US are in private prisons [1]. This is less than 1% of the population. Although 20% of federal prisoners are in private prisons as of last year [2].
The recidivism rate is even worse. In 2005 almost a half a million inmates were tracked after their release, more than 75% were rearrested within 5 years.[3]
>financial incentives to incarcerate...
Do you have any sources for this?
[1]http://www.propublica.org/article/by-the-numbers-the-u.s.s-g...
[2]http://www.motherjones.com/mojo/2015/06/private-prisons-prof...
[3]http://www.nij.gov/topics/corrections/recidivism/pages/welco...