Private Prison Complex receives terrible news.

[abaris]

I see. But won't it lead to overcrowded government prisons? I admit I've never been in prison but it's not hard to imagine what would happen when space becomes insufficient with too many people inside and limited resources.

Again, look at the American justice system and it's punitive character. That's the way to understand the largest prison population on earth. In it's extreme it can land yourself in jail for taking a piss in the streets, and, although it never was the intent to wave your dick at innocent bystanders, on the sex offenders list.

There's no need for as much prison space if you don't imprison people for petty crimes or nuisances.