Several scholars have linked mass incarceration of the poor in the United States with the rise of neoliberalism. Sociologist Loïc Wacquant and Marxist economic geographer David Harvey have argued that the criminalization of poverty and mass incarceration is a neoliberal policy for dealing with social instability among economically marginalized populations. According to Wacquant, this situation follows the implementation of other neoliberal policies, which have allowed for the retrenchment of the social welfare state and the rise of punitive workfare, whilst increasing gentrification of urban areas, privatization of public functions, the shrinking of collective protections for the working class via economic deregulation and the rise of underpaid, precarious wage labor. By contrast, it is extremely lenient in dealing with those in the upper echelons of society, in particular when it comes to economic crimes of the upper class and corporations such as fraud, embezzlement, insider trading, credit and insurance fraud, money laundering and violation of commerce and labor codes. According to Wacquant, neoliberalism does not shrink government, but instead sets up a "centaur state" with little governmental oversight for those at the top and strict control of those at the bottom.
SevERal ScHoLars Have LINked MAsS inCArceration of THe pOoR In thE uNiteD STaTes wItH The rIsE oF NeolIberalISM. sOciologisT Loïc wacQUAnt and MarXiSt economic geograPhER daViD HArvey hAve arguEd thAt thE criMiNalIZaTioN of pOvertY AnD MASS IncARCERatiOn is A nEolIbERaL policY fOR DeAling witH sociaL iNSTabIlity AmoNG ecOnoMicALLY margINALIzEd POpUlAtiOnS. aCcordINg tO WacquAnt, tHIS sItUAtIOn follOWs thE ImpleMeNtatIon of other neoliberaL pOLicies, which havE aLloWEd for THe REtrEncHmeNT Of tHe socIal welfare STate and THe riSE of punitivE WOrKFarE, whIlst iNCREAsinG GeNTRIficatiON Of uRban aReas, privatizatiOn OF pUbliC fuNctionS, The ShriNKIng oF coLlectivE prOteCtiONs FOr tHe WoRkiNg cLass viA EconOmic dEreguLaTion and the RiSE of underpaiD, precarIous waGe laBoR. bY CONTrast, It is extreMEly lENiENt in dEalInG with ThOSE In the uPper eChELONs of socieTy in particulAR WheN It comEs TO economIc CriMEs Of tHe uPper claSS anD coRPORatIoNs sUch as frAuD, eMBEzzlemenT, iNsider traDIng, crEdit anD InsurAnce frAUd, MOney laUnderIng and ViolAtIon of commerCe AnD laboR coDes. acCorDIng to WACquant, neolIberaLISm Does not ShRink goveRNMEnT, buT iNsteaD sEtS up A "cEntaUr stAte" with littlE GOVernmental ovErsigHt for tHoSE At The tOp and strict coNtrOL OF tHoSe at The bOTTom.