In Norway you earn money in prison, and we still have lower percentage of people in prison.
Is it a fair comparison though? Norway is relatively small and homogenous compared to the US. And doesn't have a puritanical and pull-yourself-up-by-your-bootstraps culture. EDIT: I don't mean to defend the US here. It's a terrible system. Rather just point out the societies are so different I don't think what works in Norway can transfer directly to the US.
(Well, I guess you could say that countries like North Korea are worse, but even the thought of having to compare against North Korea should give a hint on how bad things really are.)