How is society affected by the "incarceration generation"?

“Parental imprisonment has emerged as a novel, and distinctly American, childhood risk that is concentrated among black children and children of low-education parents,” said Christopher Wildeman, a sociologist at the University of Michigan who is studying what some now call the “incarceration generation.”
Incarceration rates in the United States have multiplied over the last three decades, in part because of stiffer sentencing rules. At any given moment, more than 1.5 million children have a parent, usually their father, in prison, according to federal data. But many more are affected over the course of childhood, especially if they are black, new studies show.
Among those born in 1990, one in four black children, compared with one in 25 white children, had a father in prison by age 14. Risk is concentrated among black children whose parents are high-school dropouts; half of those children had a father in prison, compared with one in 14 white children with dropout parents, according to a report by Dr. Wildeman recently published in the journal Demography.
With financial woes now forcing many states to rethink the relentless expansion of prisons, “this intergenerational transfer of problems should be included as an additional cost of incarceration to society,” said Sarah S. McLanahan, a sociologist at Princeton University and director of a national survey of families that is providing data for many of the new studies.


Link: http://www.nytimes.com/2009/07/05/us/05prison.html?_r=2&ref=us