Welfare states and cultural homogeneity

The Economist, citing Tyler Cowen, describes how a Scandinavian welfare state struggles with immigration:

But note that there are two definitions of "compatriots".  One is "people who share my culture and heritage"; the other is "people who are legally entitled to live (and/or vote) within the geographic and political boundaries of my country".  [...]  The welfare state is a means of expressing solidarity with people who are mostly just like you are.  Other people with different values cannot be trusted not to abuse the system; worse, they don't much care what you think of them, and so they are immune from the social pressure that regulates consumption of benefits in homogenous communities. [emphasis mine]

I've said in the past that welfare states can only exist in places where most people agree as to what the priorities are. The article frames it in terms of cultural trust, but I prefer to see it as a question of diversity.

After all, in a socialist system, the government makes more decisions on behalf of the citizens. If you and your neighbors generally see things the same way, this can be done with relatively little conflict. The countries of Scandinavia have long fit this description.

Such a system is much less likely to work if not everybody has the same priorities. A variety of ideals is a good thing, but it means that if you want (or have) a diverse population, you need a system that is fundamentally built to allow citizens to pursue different economic goals.

Socialism is not compatible with diversity, as history repeatedly demonstrates. A free market, however, not only can survive cultural differences, it often thrives on them. (Think specialization of labor.) Paradoxically, by allowing economic diversity, we achieve greater assimilation.

The countries of Scandinavia are often cited as places with vibrant economies accompanied by generous social protections. What isn't cited is that these countries are historically among the least diverse in the world.

Immigration is a fantastic thing, not least for the country on the receiving end. Immigrants display the best kind of self-selection; these are people who are willing to sacrifice many comforts for the sake of bettering themselves. Their work ethic often puts natives to shame. And, in aging populations like the West, they represent an influx of productive young people.

Tyler asks:

Does immigration bring Nordic welfare states to the verge of collapse? They all seem to think so, but I've long found this fear puzzling.

It doesn't have to be that way. But it clearly requires at least a partial abandonment of the social welfare model.

Immigrants are willing to go through great changes for their own economic survival. Are their hosts willing to do the same?

Comments

[The Gentle Cricket]

The benefits of immigration seem to have been lost from the debate by Republicans, currently. The implication is that we need to import an underclass, people to do cheap labor, and that the ONLY alternative is to try to deport all 12 million.

I think neither plan is either realistic or beneficial.

[George Ou]

Hey Gentle Cricket.

If you don't want to support a legalized worker program AND you don't want to deport 12 million of them, what do you support? You criticize the current plan yet you fail to offer an alternative. What do you want to do? Stay with the status quo and not collect taxes on those 12 million and just let them stay here illegally?

[andrea]

When we have "no questions asked" free health care, schooling and foodstamps, what kind of immigrants do we think we are going to get?

[andrea]

sorry, should have said "migrants". -Immigrants have some sort of affinity or affection for the country they are im-migrating TO.

[George Ou]

No one ever said free health care and welfare was a good thing. Guest workers should pay local, state, federal taxes and NOT be eligible for welfare or medicade. However, their kids should be allowed to go to school; that's seems to be the least we can do for tax paying guests.

If they commit crimes or don't work and pay taxes, throw them out. If they prove to be honorable and productive workers after 10 years, let them become citizens. They've earned it.

End this ridiculous notion that if you were dropped on US soil, you're automatically a US citizen. Make English the official language.

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