Niall Ferguson, in his book "The Ascent of Money: A Financial History of the World," argues that the British welfare state undermined the fundamental motivations necessary for a thriving capitalist economy. He suggests that by providing social support, it eliminated the traditional incentives that encouraged hard work and ambition, such as the potential for substantial financial reward for effort and the consequences of financial hardship for those who do not strive.

This removal of incentives may lead to a disincentivization of productivity and personal responsibility. Without the allure of financial gain and the deterrent of economic struggle, individuals may lack the motivation to excel within a capitalist framework, ultimately impacting the overall economic vitality and dynamism of society.