The successful are unmotivated to continue successful efforts because they are punished more for achieving those efforts. They reach a “balance point” (an apex) to where any further movement forward (towards more success) will actually result in a loss and any movement backwards will also result in a loss. So, it is best for them to stay put at the apex.
The unsuccessful are rewarded with handouts so much so that they become dependent upon them and any further movement forward by them (towards success) will actually punish them by making them ineligible for further handouts, thus demotivating them from wanting to better themselves, because it is cheaper for them to languish at or near the bottom and have somebody else pay for these freebies than it is to get successful, lose the freebies and start having to pay for those items (the lost freebies) out of their own pockets."
This is a very good description explaining how both handouts can create a limit or drag on an economy AND how taxes and regulations can do so.
In the former case, the person on public assistance is penalized for trying to better their position by the generosity of the handouts. In the latter case, a business of a businessman is penalized for making the jump to a larger business model or size. For example adding headcount reaches an arbitrary threshold of increased regulation and compliance costs for health care, benefits and other requirements mandated by government.
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