As stated elsewhere, I think penal labor is just and moral in concept.

However, I do agree that the moral hazards are too great around combining it with for-profit prisons and corporations.

I think the one area where I would find private employment acceptable is work release programs at market rate, provided the pay goes to the prisoners instead of the state. I think these programs should be expanded, and could help with child support, victim restitution, and stability upon release.