An unusual opportunity exists at this time for effective political intervention aimed at achieving the development of efficient prison industries and the profitable employment of prison labor. The paper demonstrates the central importance of prison industrial policy issues and deals with the way in which 20th century treatment ideology reinforced the long-standing tradition of opposition to, and neglect of, prison industries. It disputes the view that the prison labor problem is insoluble because 'economic forces' preclude industrial development in prisons and argues that it is based on a perverse misreading of historical evidence. The article deals with prisoners' remuneration and argues that prisoners' wages should parallel those paid for similar work outside prison. The rationale for the organization of industrial prisons is outlined, and purposes to be served by effective prison work programs are defined. About 80 references are supplied.