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But if you give him a watch, he will steal other things as well. He will steal a 30k car, or a 1k TV. When do you send people to prison?

It does cost us more to punish than to give, but that is so that we would prevent all other people from stealing, from stealing even small things like watches as when added up, that would be a significant amount of stolen goods. It costs government (us taxpayers) $50,000 to keep a person in prison for 1 year. Why? Because he stole a watch? Just give him the fucking watch!!! Prisons are mostly absurd.