The problem here is that it would reward the government for either a) punishing criminals but also b) framing innocents with the goal of taking their money. We’re seeing how well that works with the private prison industrial complex. In essence, it just creates an industry of creating criminals where there were none.
Punishing criminals severely is great. Making it a business will end up with the worst kind of people optimising the revenue from it.
Ooooh no. A government position would imply at least a shred of accountability. They’d lobby for privatisation. Failing that, they’d bribe the officials in charge to run the whole system into the ground so that they can argue a private entrepreneur could run it more efficiently, and then they’d do it with as little oversight as they can buy from their legislators.