The prison system shouldn't be about
either "increasing shareholder value" or "minimizing cost-to-taxpayer". It should be about rehabilitation, justice, and public safety.
Part of the problem is that it's really hard to win an election against someone who has positioned themselves as "harder on crime" than yourself. As a result, we have legislators pushing for tougher and tougher prison sentences, mandatory sentencing, etc. I don't know how other countries deal with this pressure, but I would be eager to see the United States do better.