Well, I’m from a post-USSR country and a substantial part of this was the criminalization of homelessness. Can’t have homeless people, if you lock them up (be it in a prison or asylum).
Then again, just about anyone, who did not conform to the party’s message got locked up. Getting your place bugged at the slightest hint you might be up to something disagreeable and all that good stuff. The secret police could disappear and or beat you up without any real justification.
I hate late-stage capitalism as much as you, but coming from a country that’s been through this, I am extremely reluctant to give the rotten and frankly repugnant USSR regime any credit.