Most of the European states with problems started with the "socialist" welfare and trade unions (also socialist) policies of the free lunch leaving behind the ideals of free enterprise and "supply & demand" principles. High union pay did not commensurate with productivity. High retirement benefits led to high expenses for the increasing elderly population..( In Asia many senior people are still productive.) More benefits for single mothers in the West - so why get married then? Budgets are always in deficits. UK was also going down that road till Margaret Thatcher rolled back those socialist policies. Of course many did not like it, human nature will not give up their " perks". Similar stories in Malaysia with those enjoying the special privileges. Will they ever voluntarily give up their privileges?
Recently, there was increase in the jobs in US. But one of the reasons was that The Republican-majority Congress voted to end the welfare unemployment benefits for those who have been receiving money for more than one year. They have no choice but to go back to work. Who wants to work if they can get paid by not working?
Capitalism is not perfect - it has to be somewhat, but not too rigidly, regulated to avoid abuses and to allow incentives to NGOs involved in charity/welfare. They do a better job than govt. welfare agencies.
One of the suggestions is to provide "vouchers" for parents to choose the school rather than pouring the money direct to schools. So all schools including govt schools will try to do better by indirect competition. The parents do not get any cash. The vouchers will be redeemed by the school which the parent sent the child to.
Socialism in theory sounds good - equality in income. But as an economic system of growth, it has failed. Socialist countries are more likely to have less freedom of expression than capitalist countries.
Parallel countries eg East & West Germany, North and South Korea have shown the obvious. Former communist and socialist countries countries have stagnated. China is communist in politics but is more capitalist in economics than many Western countries. The Labour party under Tony Blair has shed many of the hard Labour policies. So has Germany. India also stagnated under its socialist policies in the 60s and 70s and although the gap between the rich and poor may be greater now, there is less poverty now than before. There is no more famine and rationing as before (I was there in India in the 60s when there was rationing in grains, sugar,and oil). Now India is almost self sufficient in food production.
Singapore has dropped its Socialist label and see how it has progressed.The Malays in Sinapore whose median income is more than RM10,000 are better off in general that those in Malaysia (exclude the UMNOputras). Affirmative action is sometimes necessary but you will agree that the policies in Malaysia are "socialistic" as far as the NEP is concerned. Get the perks but no need to work hard. Like many socialist countries, there is also the privileged class ie the top government officials.
As I said capitalist system is not perfect. It is better than socialism in practice (no point talking of theory). Like in USA and UK, many NGOs and church based charities are given tax benefits to care for the underprivileged and they are more effective and efficient than government programmes to help the poor. SK Teoh
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