National statistics show that the majority (65 percent) of offenders are sentenced to prison for property, drugs, and public disorder crimes. A significant number (15 percent) of all inmates have not been convicted of any crime but are returned to prison for violating their parole conditions. This report, based primarily on lengthy interviews with inmates in three States, provides a more complete view of these offenders. The research shows that most inmates are sentenced for petty crimes that pose little danger to public safety or significant economic loss to victims. Further, although drug use is a frequent activity in their lifestyles, most inmates are not addicted to drugs; rather, they use drugs to maintain a meager level of economic and psychological existence. Although they share the same middle- class goal as most Americans -- a home, family, and job -- they are ill-equipped to maintain a legitimate job for any significant period; hence, they occasionally resort to a disorganized and petty criminal lifestyle. These data should cause policymakers to question why the Nation spends such an exorbitant amount of money each year (nearly $7 billion in 1986) to warehouse petty criminals. Instead of escalating the use of expensive and largely ineffective prison sanctions, alternative options should be launched that will reduce taxpayer costs, increase restitution to victims, and help ensure that these prisoners will not return to a life of petty crime. This report concludes that persons who do not pose a significant danger to the public should be sentenced to probation or jail or be required to pay fines or restitution. For those who are sentenced to prison, shorter terms should be imposed. Also, correctional agencies should strive to provide vocational training, job training, and basic educational services to better prepare offenders for their return to society.