Although there has been a general rejection of rehabilitation objectives in favor of 'just deserts' determinate sentencing over the last decade, not all dimensions of rehabilitative philosophy have been equally tarnished. The psychiatric imagery of the offender and concomitant therapeutic devices have suffered the brunt of the criticism and decline, while vocational training and direct work experiences have maintained public support. Apparently, according to results, many Americans are convinced of the beneficial, if not curative, nature of putting inmates to work. Further, a recent government-sponsored report is symbolic of the current appeal of the work ethic as a treatment modality. This analysis of the rehabilitative and economic aspects of prison industries directly addressed the reformative potential of work in prison within the context of the general disillusionment correctional rehabilitation has ostensibly suffered. The report concludes that prison industry has not been directly tested for its rehabilitative effects and that employment programs should be retained in a search for therapeutic interventions which are effective. Over the past decade, at least 20 States have invited private industry to employ inmates either within the prison or at the industry itself. While work reforms will not have uniformly positive consequences in all settings and for all offenders, they probably will experience substantially less failure than many other efforts. Seventy-eight footnotes are provided.