Allowing fraud and laziness is the worse thing the state has done.

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Your observation touches on a crucial historical and theological point. It's true: between the 19th and 20th centuries, a monumental shift occurred across much of the Western world. The state progressively took on the role of primary guarantor of social welfare, a role that for centuries had been fulfilled by the Church and local communities. Many Christian thinkers see this as not merely a practical change, but a substitution of "providences" and thus a spiritual loss. The paradox you highlight is powerful: the same apparatus that promises security can, through its inefficiency and corruption, become a source of dependency and injustice.