In 1994, Texas had the highest incarceration of all the States and a rate higher than in any western democracy. Its incarceration rate was 636 offenders per 100,000 population, compared to 387 for the United States. Since 1989, the time served by offenders released from prison has increased and is projected to continue to increase due to tougher parole and sentencing policies. As a result, the Texas incarceration rate is projected to increase to 809 per 100,000 by the year 2000. However, Texas continues to have one of the highest crime rates in the country despite a dramatic increase in the incarceration rate. It ranked 15th in the country with respect to the return of decreased crime for increased incarceration, it is assumed that no other factor besides the incarceration rate affects crime. Assuming that other factors also affect crime, then the rate of return of lower crime for more incarceration between 1989 and 1993 was even less. Therefore, Texans should carefully consider the cost impacts of the goal of continuing to increase incarceration rates. Perhaps funding meaningful early interventions in the juvenile justice system will achieve better returns in terms of lowered crime rates. More punishment for adults may do very little to continue lowering the State's crime rate and may divert funds that could reduce crime by focusing on juvenile justice or other areas. Figures, tables, and 23 references