[yongjik]

Quite to the contrary, when you have a system where "non-productive" citizens are not supported, you stifle innovation, because people don't (can't) take chances when one misstep will lead them into inescapable poverty.

Inefficiencies develop across the system because people can't afford to make a change. Firing people or shutting down a factory becomes a massive struggle of life and death, frequently with literal deaths. (If unemployment means your family's livelihood is at stake, you wouldn't just walk away, would you?)

Source: grew up in a country like that.