You're assuming people use logical, rational thought which has ample amounts of evidence against it. Jails used to be horrific, yet crime rates were higher. The presence of a jail sentence or even a death sentence as a deterrent is widely discredited. The only uses for prisons are to prevent future crimes by removing the ability to perform crimes and intensive rehabilitation. Most former convicts do not want to reoffend but the American social and legal system of punishing people for their entire lives for offenses committed once prevents effective reintegration into society.

All the science points to preventing initial conditions for conviction and significant improvements needed post release.

http://www.slate.com/articles/business/the_dismal_science/20...

https://nij.gov/five-things/Pages/deterrence.aspx

https://www.nij.gov/topics/corrections/recidivism/Pages/welc...