That is the fundamental question of the sentencing phase of a trial (which is why if you’re unfamiliar with criminal trials, that they’re basically “retrying” a defendant they’ve already found guilty might seem weird), and I agree with the other commenters that it should stop there. Holding people back from regular employment directly causes recidivism. Unemployment and crime are correlated. You can’t just pull people out of society because they erred once, and this is why convictions with priors are worse than without; that question is being answered for you.
You want fewer people in prison and safer communities? Let felons work, fire them when they don’t, or they’ll get the money in other ways. It’s genuinely as simple as that. Beside the DUI crowd, half the minimum security inmates I spent time with were there for check fraud, petty theft, and other crimes to feed themselves or their kids. Many had priors, sometimes several, making one guy I met who had passed a $750 bad check stare down the barrel of a ten stretch.
Think about this: upon my conviction I lost the ability to both vote and leave the country. I have both back now (with effort), but even looking at this situation macroeconomically, what is that saying about even first time offenders?