The idea that welfare is a universal necessity which must be satisfied even at the cost of limiting individual freedom is a dangerous one. The guarantee of a minimum welfare income is compatible with economic freedom and the market order. It can be justified on ethical as well as economic grounds. By alleviating poverty, society benefits economically. Reduction of poverty increases productive human resources and stimulates the market. It promotes social harmony and promotes the spiritual wellbeing of the community. But the alleviation of poverty is quite a different proposition from the egalitarian objective of the modern welfare state.
The welfare state was built on the wealth generated by the growth of capitalism. Profits of private enterprise yielded the taxes which enabled governments to embark on their ambitious welfare programs. However, the wheel has now turned. By imposing unreasonable and ever-increasing financial and regulatory burdens on the market, the state is gradually destroying the sources of wealth. It is, in fact, proceeding to kill the geese that have been laying the golden eggs.