Same deal as the soviet union - if a government is too involved in people's lives, people get sneaky, dishonesty is incentivized.
Discussion
This is my take as well
Fiat does this to people in general.
The proliferation of zero sum games.
It's not because people are assholes but if they don't play them to win, they get left behind.
In a socialist state, you're incentivised to play the victim. To each according to his needs - victimhood is rewarded & responsibility punished.
An unnatural control system can't contain a complex system larger than itself.