In recent years, escalating costs and disillusionment with the rehabilitative ideal have focused attention on correctional goals. A primary rationale for increasing correctional expenditures has been the development of rehabilitation programs, although studies have failed to prove that such efforts affect recidivism. Recent evaluations have indicated that welfare or supervision programs to assist inmates in adjusting to noncriminal activities are more effective than therapy or traditional parole methods based on a strong personal relationship between worker and offender. Correctional programs also have been evaluated in terms of economic costs rather than impact on crime rates or the general good of society. This viewpoint advocates community correctional programs and reforms in the parole system. However, an emphasis on economy without considering the objectives of correctional programs may produce effects that are socially undesirable and counterproductive. When rehabilitation loses its position as the primary measure of correctional effectiveness, the justice and humaneness with which criminal sentences are enforced become the major criteria for evaluation. Data on violence in prisons and its psychological effects support the need for inmate welfare programs. The prisoner's rights movement and increased attention to the role of prison labor in defraying costs will also influence any reconsiderations of correctional goals. The paper contains 79 references.