The Welfare System: A Flawed Model

Every day is a good opportunity to reflect on the inefficiencies of the modern welfare system. Governments quietly collect significant sums from taxpayers and redistribute a fraction of it with much fanfare.

The fundamental issue is straightforward: when it becomes easier to qualify for benefits, more people will make the effort to obtain them. After all, why wouldn’t they? Even without policy relaxations, increasing pension payouts creates a greater incentive for individuals to seek eligibility. This explains why, when disability pensions increase, there is a sudden rise in the number of people classified as disabled.

It is true that some individuals genuinely struggle, and financial assistance can help them regain employment or maintain a dignified standard of living. However, welfare systems function effectively only when the number of beneficiaries remains relatively small. When too many people rely on government aid, the system becomes unsustainable and risks collapse. In Israel, demographic trends suggest that the ultra-Orthodox population will drive such an outcome, whereas in Europe, large-scale immigration poses similar challenges. Several European nations have already begun rolling back welfare policies to avoid economic destabilization.

This highlights a crucial lesson: a welfare state can only function sustainably in societies with a strong sense of cultural cohesion, where there are no major groups inclined to exploit the system at the expense of others. Even then, such policies should be kept at a limited scale to prevent long-term financial instability.