Some economists and policy analysts have concluded that incarceration is less expensive than the crime it prevents. Their arguments, however, are based more on politics than on scientific inquiry and do not clearly demonstrate the cost- effectiveness of incarceration. Various studies have been conducted to evaluate the relationship between crime and punishment. Studies advocating the use of imprisonment are often based on simplistic analysis of complex issues, misleading comparisons of alternatives, or selective use of data to prove a point of view. Public concern over rising crime levels is discussed in terms of the increasing urbanization of America, improvements in crime reporting, changes in the workplace, and family disruption. Factors that influence crime rates are examined in the context of punishment, criminal justice policies, and demographic and economic issues. A comparison of crime and incarceration rates in Wisconsin and Minnesota is presented to demonstrate the limited utility of incarceration in reducing crime and the need to consider intermediate sanctions instead. 11 references, 2 endnotes, and 5 figures