The published material shows that the decline of residential care in the 1970's contributed to a dramatic increase in the use of penal custody, despite growing criticism of both the level of incarceration and the institutional regimes provided. The "tough" approach of the incoming government in 1979 led to a trend away from the use of detention centers and toward more general decarceration, both of which were entirely contrary to expectations. The impact of custody on perceptions of the juvenile crime problem is discussed. The author concludes that liberal crime policies may be possible only when the government is confident in its own strength and has no need to demonstrate "toughness." 52 references, 1 note, and 3 tables