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Well, that depends on how you look at it. There are more parties whose well being here is at stake then just this guy, and besides that he is now a drain on your society, whereas if you'd put him to work you could garner his wages.

Locking him up for 10 years is just going to ruin the life of one child and cost a fortune in maintaining him.

Six months community service would be a net gain for the community, 10 years of prison is a net loss.

The function of a jail is not to take revenge, it is to keep harmful people out of society. This guy did a great job up to the point where he cracked. I'm sure he could be made to do a great job again given half a chance, and keep him under the breaking strain this time.



>The function of a jail is not to take revenge, it is to keep harmful people out of society

There have been countless words written on the subject, but one of the functions IS deterrence.

Look at it this way: you can try to launch a startup and guide it to a successful exit. If it succeeds, you get some nice cash in the bank. If you fail, you spent a few years and have no material gain to show for it.

Or, you can try to get away with a large-scale fraud. If it succeeds, you get some nice cash in the bank. If you fail, you spend 6 months doing community service and have no material gain to show for it.

Yes, it's obviously oversimplifying (ethics, experience/learning from a failed startup, what do you enjoy doing, etc.) But there has to be a significant cost of failure to prevent people from deciding it's worth a try.


You're missing a few things. The punishment of 10 years in jail didn't deter him. Why? Because he was desperate and viewed this as his only way out of a desperate situation. I'm sure there are many people that attempt the same things that he did for same/similar reasons. This punishment isn't going to deter someone that thinks: (1) They have the 'system' beat (2) This is their only option.


"The function of a jail is not to take revenge, it is to keep harmful people out of society."

Says you. I think the relevant role here is "deterrent". Stealing a million dollars needs to carry more risk than "If I get caught, I'll have to spend a lot of time picking up trash." Letting this thing go lightly is a much larger net gain when a lot more people decide it's rational to try their hand at insurance fraud.




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