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Journeyman comments on Welcome to Less Wrong! (7th thread, December 2014) - Less Wrong
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Well, "providing universal healthcare and welfare will lead to a massive drop in motivation to work" is a scientific prediction. We can find out whether it is true by looking at countries where this already happens - taxes pay for good socialised healthcare and welfare programs - like the UK and the Nordics, and seeing if your prediction has come true.
The UK employment rate is 5.6%, the United States is 5.3%. Not a particularly big difference, nothing indicating that the UK's universal free healthcare has created some kind of horrifying utility drop because there's no motivation to work. We can take another example if you like. Healthcare in Iceland is universal, and Iceland's unemployment rate is 4.3% (it also has the highest life expectancy in Europe).
This is not an ideological dispute. This is a dispute of scientific fact. Does taxing people and providing universal healthcare and welfare lead to a massive drop in utility by destroying the motivation to work (and meaning that people don't work)? This experiment has already been performed - the UK and Iceland have universal healthcare and provide welfare to unemployed citizens - and, um, the results are kind of conclusive. The world hasn't ended over here. Everyone is still motivated to work. Unemployment rates are pretty similar to those in the US where welfare etc isn't very good and there's not universal healthcare. Your prediction didn't come true, so if you're a rationalist, you have to update now.
Scandinavia and the UK are relatively ethnically homogenous, high-trust, and productive populations. Socialized policies are going to work relatively better in these populations. Northwest European populations are not an appropriate reference class to generalize about the rest of the world, and they are often different even from other parts of Europe.
Socialized policies will have poorer results in more heterogenous populations. For example, imagine that a country has multiple tribes that don't like each other; they aren't going to like supporting each other's members through welfare. As another example, imagine that multiple populations in a country have very different economic productivity. The people who are higher in productivity aren't going to enjoy their taxes being siphoned off to support other groups who aren't pulling their weight economically. These situations are a recipe for ethnic conflict.
Icelanders may be happy with their socialized policies now, but imagine if you created a new nation with a combination of Icelanders and Greeks called Icegreekland. The Icelanders would probably be a lot more productive than the Greeks and unhappy about needing to support them through welfare. Icelanders might be more motivated to work and pay taxes if it's creating a social safety net for their own community, but less excited about working to pay taxes to support Greeks. And who can blame them?
There is plenty of valid debate about the likely consequences of socialized policies for populations other than homogenous NW European populations. Whoever told you these issues were a matter of scientific fact was misleading you. This is an excellent example of how the siren's call of politically attractive answers leads people to cut corners during their analysis so it goes in the desired direction, whether they are aware they are doing it or not.
Generalizing what works for one group as appropriate for another is a really common failure mode through history which hurts real people. See the whole "democracy in Iraq" thing as another example.