"The demand for our facilities and services could be adversely affected by the relaxation of enforcement efforts, leniency in conviction or parole standards and sentencing practices or through the decriminalization of certain activities that are currently proscribed by our criminal laws. For instance, any changes with respect to drugs and controlled substances or illegal immigration could affect the number of persons arrested, convicted, and sentenced, thereby potentially reducing demand for correctional facilities to house them."
This is why I very much expect a "War on Piracy" or some other war to ignite domestically, if the war on drugs is ended. There are too many people profiting from arresting and putting others in prison, and they will fight to keep that status quo, one way or another. That, combined with NSA, and other agencies increasing desire for collecting all sorts of data domestically, on everyone, could make for a pretty terrifying future. Then they could just fish for crimes through spying, and then send the SWAT teams to people's homes.
I like to think that most people are moral (perhaps I'm foolish). If you take away the war on drugs, and perhaps other ~victimless crimes (prostitution, gambling), then there aren't going to be that many crimes left.
-- Corrections Corporation of America SEC filing.