The coercive hand of the state takes from the productive and gives to all. There is much incentive to maximize what one gets in handouts. People become expert at working the system, without incentive to be productive, to produce a good or service which someone would want. The supply of goods and services decrease correspondingly. Examples today where this has gone to the end game are in Zimbabwe, which used to be the breadbasket of Africa but today must import food, and Venezuela, which 30 years ago was a prosperous democracy, but today cannot feed itself. The chaos is so profound that people are starving and eating garbage to stay alive.