Firstly the crisis of southern Euro countries was not arisen by welfare. Countries like Greece, Spain and Portugal are not developed industrial countries compared with middle and northern Euro. After 21st century, there countries have been interested in playing financial games with banks in the UK and the USA. Before 2008, global capital market was able to pour a large quantity of money into banks in southern Euro countries and sustained their highly social welfare. What they did was just following the steps of USA banks. In a country without industry, they could earned a lot without innovation in products and companies. When tsunami came after 2008, all bubbles exploded and the countries sustained with capital fell down. The financial achievements before 2008 had driven the people away from products creation. Over capitalization corrupted the innovation ability of the country because they didn’t need to create.
On the contrary, welfare in middle and northern Euro countries even becomes the insurance of creation. It is well known Germany, Switzerland run famous banks such as UBS, Deutsche Bank, Zurich Financial and Allianz etc. But the major business of these financial organizations are not playing capital games but serving real economy including industry and basic manufacturing. Each year, products from these countries earn most income for them. The main support of the countries’ income and social welfare is the profit of their products. Thus, people in these countries have the tradition to be innovative in industry. The perfect social welfare indeed protect them not to be so poor if their new product is a failure. Consequently, for a country sustained by real economy, social welfare is even a generator of innovation.
The set of comparison obvious tells that the countries embraced by total capitalization is the root of lazy. If the government takes more care on real economy, comfortable social welfare can motivate more innovation, regardless the failure. Euro mode of middle and northern European countries is a paradigm for the UK, USA, Canada and also new booming countries like China and Brazil. This mode with combination of ample manufacturing and social welfare is the most dependable economic mode.