I think, victims feel better with their perpetrators in jail, so it does something for them.
With the expensive US jails, there is no way the average criminal could pay for their own "expenses" and much less for payments to their victims. Bringing down these costs could do more for the tax payer than to make them work.
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I agree that it may be partial comfort. I think the victim of a crime should have a say in what sort of compensation they can demand, within an arbitrary range of options set by social custom and morality, which includes things like proportionality and no death penalty.
US jails are expensive only because the current system of jail contracts paid for with the taxpayer's money is a source of massive corruption.