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Squilliam said:

Welfare is actually meant to be an investment, funnily enough. It is supposed to be an investment in the human capital of a nation. One of the problems of any large society is that the people who are most likely to have children are the people most likely to screw their lives without assistance from the government. The only way to prevent that would be to curtail personal liberties, ala China because unfortunately those best able to raise the next generation are those least willing to do the work.

The largest problem is there no advantage to working a crappy job vs getting the same or more from welfare.

I'm interested to see how the new UK plan will work effects wise.  Allowing you to keep some benefits when you get your crappy job, making the crappy job worth more money.