tl;dr: "We want to privatize parole so we can siphon some sweet government cheese and have near zero accountability".
Where will the perverse incentives land this company in 10 years? Will we see them lobbying to keep xyz illegal so as to maintain their "customer base"? Will they under-report parole violations so not to undermine their income, thereby leading to (terrible crime z)? Who knows. It's not a thing that should be privatized, because money can't be trusted, because incentives corrupt.
Where will the perverse incentives land this company in 10 years? Will we see them lobbying to keep xyz illegal so as to maintain their "customer base"? Will they under-report parole violations so not to undermine their income, thereby leading to (terrible crime z)? Who knows. It's not a thing that should be privatized, because money can't be trusted, because incentives corrupt.
But hey, if it makes YC a buck...