Pfft, if you want to milk evil you have to put Liquid Pain extractors under hospital beds so you have a steady supply of sacrifice/crafting XP.

Your pain in your dying hours fuel the State!
... Read some of the undead monstrosities descriptions. Than talk again about 'milking evil'.
 
The issue with prison labor is slavery. We are publicly anti-slavery and a very large percentage of our citizens will be freed slaves. We'll actually be seen as less just than if we just stuck to the rough corporal punishment methods in use by most polities, because it'll be viewed as enslaving people.
 
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