24.8 Welfare & Increasing Government Keep The Poor, Poor
From The Reality Of Welfare by M Cooray (1996)

The democratic order has permitted the poor to progress and develop through hard work. There were many rags to riches stories. There were also many examples of not so spectacular successes but of significant social mobility. This is not happening today to the same extent. Rags to millionaire stories are not often heard these days. The reason is that expanding government regulation has made it very difficult for the entrepreneur, especially for those who do not know the ropes. A successful businessman must know his way through the maze of government regulations. This provides a very significant advantage to those already in the system or who have access to those in the system. An aspiring entrepreneur who is an outsider without any connections is deterred by the mass of regulations.

Likewise, welfare has the unintended effect of keeping the poor, poor and within their station. At an earlier period in the development of western civilisation, the poor could rise, provided they were willing to work hard (harder than the privileged). By taking away the incentive to work, welfare has ensured that the poor generally remain poor. Welfare has made it more profitable for the poor to choose leisure than to work.