[imtringued]

Honestly, the reason is really boring and it probably won't be fixed.

When an economy reaches stagnation/saturation people still want to play the capital accumulation game. So they start accumulating money and land that they never intend to use. Money is needed as a medium of exchange for the division of labor. Shelter is a basic need so people absolutely need land.

Because this is an accumulation game, owning more just means you demand more. If the interest rate (or gains from land or whatever financial asset) were 3% then some people end up unemployed because they cannot clear this artificial profitability gate. Employers want to hire whole individuals for as long as possible (ideally a 60 hour week). This means some people go without a job because 2 people working 60 hours can do the job of 3 people (on paper). People (especially the youth) are scared of ending up long term unemployed, so they skill up. They now have to compete with their peers for an artificially limited number of jobs. If they win the competition then they win big. If they lose, they lose big. The government must (they have no choice) intervene. Predictably, there must be an expansion of welfare. Remember how 2 people are doing the jobs of 3? Well, that means a small portion of that extra 1/3 will go to the person that ended up unemployed. It's extremely counterproductive but that is just how things are.

So now you have two options. Play the game, suffer, win and pay welfare for others or never play and get paid welfare (it's not like they want you as their competition anyway).

I have to put emphasis on the fact that the welfare is just a symptom to avoid a rise in extremism. If you get rid of it without treating the symptom then expect to see lots of angry people on the street who have nothing better to do than hate you.