Inevitable downfall is stretching it a bit methinks

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Denmark (and scandinavia in general) has the largest welfare system in the world. I saw some numbers that said that 43% of our tax kroner goes to the welfare system.
Denmark is doing ok internationally, and has done ok overall since the introduction of the welfare system in the midst of last century.
Now, what exactly qualifies as "welfare"? In Denmark, things like financial aid to students do not (I get around 3000 DKK, or $350, a month from the state). But it is a form of welfare.
Supporting education is something I'd always want to do. It's an investment rather than a pure expense. People with higher education tends to up a country's competitiveness, earn more money (and therefore pay more taxes) and generally have much less of a need for receiving cash for nothing (i.e the "welfare" system in the more common sense of the phrase).
There's of course the added ideological bonus that it gives you the right to say "everyone has the same shot at getting an education: those that haven't got one haven't got one because of issues directly relating to the individual in question. It's not the 'same* chance, since we're genetically different and all grow up in different environments, but the chance itself it equal.
Survival help - I'm for that. There should (IMHO) be some kind of mechanism in place that'll on short term help a person out if he or she loses favour on the job market. An example: outdated working skills. let's say a programmer has programmed in pascal all his life, and that the company he is employed by does not send him or her for some up to date training. The language becomes obsolete and with it, the programmer (more or less, at least job opportunities will dwindle). Survival help will be suitable here.
Reeducation is an investment as well. I have no problems paying for this, as again, it leads to a more competitive country with a better economy.
What I *do* have a *major* problem with is that the druggie next door to me gets his rent paid by the states, gets his medicine paid by the state, gets "pocket money" pfrom the state, food from the state, free bus rides from the state and overall has a much larger disposable income than I have. I'm working very hard to get ends to meet; and at the start of each semester I have book expenses of up to $300. I'm already living below the poverty line, but that's all the backing I can get.
Career welfare people. Weed these people out and you can drop welfare spendings in half. In political discussions with my Danish friends, I aruge this; but to my dismay, it seems I'm a single uncompassionate capitalistic swinedog surrounded by those with more "human" values. Apparently they mistake my lack of desire to pay for freeloaders for cynicism and no compassion.
Another aspect of the welfare system is it helps to reduce the crime rate through levelling out income inequality, a factor that most sociologists and crimonologists agree is important in terms of crime rate. Breing on welfare doesn't stop my druggie neighbor from committing crimes; he was just sentenced for drug possession, armed robbery and shop lifting. So he got 6 months on parole and will now undergo a psychiatric evaluation in order to see what treatment fits him. The dude has been a criminal addict since he was 15; he ain't gonna chance. Stop wasting money.
So, personal anecdotes mixed with some logic has given me the following philosophy: there *should* be help for pople on dire straits - it can happen to anyone. One should make *investments* into the people of a nation. but one should *not* overdo it, and there *has* to be a philosophy of "we'll help you help yourself, but we'll be damned if we let you mooch off us". In Denmark there currently isn't.
That being said, access to university and so forth without having to pay tuition is one of the strong points of this nation. Access to education should not be limited by no access to cash.
*Note* It is possible to work and study at the same time. You try doing it while being enrolled where I'm at; after a full day at the place, rthere's 2 hours of problem solving and then another 3 hours of preparation for the next day. I'm exhausted; some might be able to pull it off, but I'm not, and I know most are similar to me.