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Because there are certain qualifications one must have in order to arrest someone, there are certain qualifications one must have to prosecute them, but requiring certain qualifications of someone who must incarcerate them is restraint of trade and against the American Way.
Not only that, but if you've got a depressed area with a vanishing economy, the two quickest ways to get jobs in that community are a) build a casino b) build a prison. Look at it this way - prisons are one of the most functional ways to transfer funds from a federal budget to a state budget, or a state budget to a local budget, or a federal, state or local budget to a state, local or federal company. They are money vectors, pure and simple, and their medium is just like interstate trucking or hog farming. Hogs don't like hog farmers, either. That's the prison system in a nutshell - factory farming from a pig's eye view.