The prisons are not gonna fill themselves
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It's more effective on a finite budget. Just like focusing on a rehabilitation is better than focusing on punishment in prisons. The Norwegian method spends way more per person but the ones that go through the system are much less likely to come back. This means that per person Norway spends way less than a lot of other countries.
Norway spends 3x more per prisoner than the US but spend half as much on prisons.