THE ANALYSIS FOCUSES ON THE APPLICABILITY OF THE RUSCHE-KIRCHHEIMER THEORY OF PENOLOGY TO CONTEMPORARY WESTERN SOCIETIES. THAT THEORY SUGGESTS THAT PENAL POLICIES AND PRACTICES REFLECT PREVAILING IDEOLOGIES, WHICH IN TURN ARE PARTLY DETERMINED BY ECONOMIC REQUIREMENTS OF THE SYSTEM OF MATERIAL PRODUCTION. THE HYPOTHESIS THAT ECONOMIC CRISIS WILL BE ACCOMPANIED BY SEVERE PENAL PRACTICES IS TESTED BY COMPARING UNEMPLOYMENT DATA WITH IMPRISONMENT DATA FOR THE UNITED STATES FOR 1926 THROUGH 1974 AND FOR A CALIFORNIA JURISDICTION FOR 1969 THROUGH 1976. THE SAME DATA ARE USED TO TEST THE HYPOTHESIS THAT INCREASED IMPRISONMENT FUNCTIONS TO REDUCE UNEMPLOYMENT. WITH THE EXCEPTION OF DATA FOR THE 11-YEAR PERIOD OF THE GREAT DEPRESSION AND FOR FEDERAL PRISONS PRIOR TO 1960, THE ANALYSIS SHOWS A POSITIVE, STATISTICALLY SIGNIFICANT RELATIONSHIPS BETWEEN UNEMPLOYMENT AND INCARCERATION. THE RELATIONSHIP HOLDS FOR BOTH THE LOCAL AND THE NATIONAL SAMPLE AND IS UNAFFECTED BY FLUCTUATIONS IN THE VOLUME OF CRIMES AND ARRESTS. THE HYPOTHESIS THAT IMPRISONMENT ACTS TO REDUCE UNEMPLOYMENT IS NOT SUPPORTED BY THE DATA. SUPPORTING TABULAR DATA ARE INCLUDED.