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Why is this relevant? Are the proceeds of their labor given to the people they harmed? Who gets to measure the harm?

There is, however, a very clear conflict of interest caused by allowing the justice system to benefit financially from the people they imprison.

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> Who gets to measure the harm?

Courts do by giving different sentences based on sentencing guidelines, the nature of the crime, and the individual circumstances.

In an indirect way, yes. States have Victims Compensation Funds, which help defray the losses incurred by victims [1]. No, the profits from criminals' indenture do not go directly there, but they do defray the cost of holding prisoners.

[1] https://www.benefits.gov/benefit/4416

It's all about the conflict of interest created by having prisons earning money by having prisoners.

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