A welfare state with low barriers to entry incentivizes immigration for economic benefits. This can lead to systemic fraud and weakened voter laws as politicians cater to this new bloc to gain and retain power, even if it harms the state's long-term stability.
States can increase congressional representation and electoral votes by boosting population counts for the census. This creates an incentive to attract residents, including illegal immigrants, and fund their needs by leveraging federal assistance programs, often through fraudulent means, effectively offloading the cost of gaining political power.
According to James Burnham's "Iron Law of Oligarchy," systems eventually serve their rulers. In government, deficit spending and subsidies are used to secure votes and donor funding, meaning leaders are incentivized to maintain the flow of money, even if it's wasteful or fraudulent, to ensure their own political survival.
Well-intentioned government support programs can become an economic "shackle," disincentivizing upward mobility. This risks a negative cycle: dependent citizens demand more benefits, requiring higher taxes that drive out businesses, which erodes the tax base and leads to calls for even more wealth redistribution and government control.
America intentionally avoided solving illegal immigration because it serves a crucial economic purpose: providing a flexible, cheap labor force that doesn't draw on social safety nets. This benefits industries and consumers while placing little burden on the state.
States are legally required to offer voter registration alongside welfare programs like Medicaid. This creates a political incentive to maximize enrollment, which can lead to lax oversight and a reluctance to investigate or prosecute fraud.
Howard Lutnick argues that America's historical success with open borders was possible only because the government offered no safety net. Immigrants had to be self-sufficient or they would fail and leave. He posits that once a nation establishes a welfare state, it must implement controlled borders to protect its resources.
Robert Solow posits that rising inequality isn't just an economic issue; it's a political one. Initial economic disparities lead to political inequality, which then allows the powerful to shape laws (like deregulation) in their favor, further concentrating wealth and reinforcing the initial inequality.
Intended as a safety net, Britain's extensive welfare system now acts as a trap, creating powerful disincentives to work. With over half of households receiving more in benefits than they pay in taxes, the system fosters a dependency that is difficult for anyone, even the ambitious, to escape.
The massive fraud in Minnesota is framed not as mere incompetence but as a deliberate political machine. By allowing entities to siphon billions, politicians secure a loyal voting bloc and campaign donations. The fraud becomes a feature, not a bug, of a self-perpetuating system where accountability is discouraged.
Immigration policy must account for economic incentives. Unlike in the past, modern welfare states make immigration an economically rational choice for survival, not just opportunity. This shifts the dynamic, attracting individuals based on benefits rather than a desire to contribute without a safety net.