http://upload.wikimedia.org/wikipedia/commons/thumb/5/54/US_...
But that's not all; prison labor is now used as cheap labor to compete with foreign countries, instituting a new age of under-the-radar slavery.
http://www.youtube.com/watch?v=gwT6CisM0mU
The more you look at this cyclic process, the more disturbing it becomes.
I think the real issue is that the US has some socio-economic issues that we've as yet let unresolved: drugs (as mentioned), policing strategy, judicial/legislative strategy, welfare, education, etc. I don't think institutionalization is a major contributor.