HYPOTHESES REGARDING THE RELATIONSHIP BETWEEN PUNISHMENT AND ECONOMIC CONDITIONS WERE FORMULATED. THE FIRST POSTULATES THAT PUNISHMENT IS MORE SEVERE AT TIMES OF ECONOMIC CRISIS; THE SECOND, THAT IN POSTINDUSTRIAL SOCIETIES, IMPRISONMENT FUNCTIONS TO REMOVE A PART OF THE SURPLUS POPULATION FROM THE LABOR MARKET. EXAMINING THE FIRST HYPOTHESIS, SEVERITY OF PUNISHMENT WAS OPERATIONALIZED AS THE FREQUENCY OF IMPRISONMENT, AND ECONOMIC CONDITIONS WERE INDEXED BY UNEMPLOYMENT RATES. THE HYPOTHESIS WAS TESTED BY STATISTICALLY ANALYZING TWO SETS OF DATA: (1) ANNUAL IMPRISONMENT AND UNEMPLOYMENT STATISTICS FOR THE UNITED STATES, 1926-1974; AND (2) MONTHLY EMPLOYMENT AND JAIL POPULATION STATISTICS FOR SUNSHINE COUNTY, CALIF., FROM 1969 TO 1976. IT WAS FOUND THAT AS UNEMPLOYMENT INCREASED, IMPRISONMENT INCREASED, REGARDLESS OF THE VOLUME OF RECORDED CRIMINAL ACTIVITY. THIS FINDING WAS FURTHER SUPPORTED BY ANALYSIS OF OTHER EXISTING RESEARCH. EXAMINATION OF THE LITERATURE AND REANALYSIS OF EXISTING DATA BASES INDICATED NO SUPPORT FOR THE IMPACT OF ECONOMIC CONDITIONS ON CRIME. IT WAS ALSO FOUND THAT THE INCLUSION OF STATE AND FEDERAL PRISONERS INTO THE LABOR FORCE STATISTICS WOULD RESULT IN AN AVERAGE INCREASE IN UNEMPLOYMENT RATES OF 0.1 PERCENT. SUPPORTING DATA AND A LIST OF REFERENCES ARE PROVIDED. (AUTHOR ABSTRACT MODIFIED--MLC)