Stick a fork in socialism (welfare States) and the global economy. The fat lady has sung, and we await the collapse into a chaotic economic abyss of megadeath and destruction. Thank you welfare State! This is a great gift to humanity. It has only happened over and over again without fail since Mesopotamia 6000 B.C., yet humans continue to do the same exact social organization (tax and redistribute) over and over expecting a different outcome. That is the definition of INSANITY.
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You are referring to history as if times haven't changed. If pure capitalism was in order back then, things might have turned out worse. The times have changed and we have movements such as the zeitgeist movement that recognizes that technological unemployment and technological improvements has instilled leeway for such balance of income disparities such as some sort of automated income generation to fill in the gaps and provide greater balance to our ecosystem