Where will they be institutionalized exactly? Start naming facilities. Who will pay for their care and imprisonment... i mean treatment?
I doubt you have even the most remote understanding of the mental institution history in this country and the fact that most were shut down due to horrific treatment. Lack of funding and overcrowding turned the mental health profession into the prison profession, except worse because few gave a crap what happened to these people. Everyone wants to lock the crazies up but nobody wants to pay for it.
Considering that according to statistics, about one percent of the population displays schizophrenic symptoms, that would be, what, three million people locked away? We're already having trouble handling 1.5 million prison inmates.