The insidious elements of collectivism placed ever more power into the hands of government, which in turn began to exert its coercive influence over the citizenry. In a self-perpetuating cycle, the engorged parasitic state has now positioned itself so that it can bribe its subjects with subsidies which in turn ensure support for the very policies which diminish freedom and independence. Such a condition ultimately sparks discontent among the controlled masses, who then begin to rebel against the trap into which they have been led. The state-controlled serfs have been conditioned to obey, and the state is adept at finding an excuse for foreign adventure, the remedy for domestic discontent. Citing the Mideast during the late 1950s, when Israel, Egypt, France, and England were embroiled in a conflict over the Suez Canal, Dr. Hans Sennholz demonstrates how interventionist nations are the most likely to spill each other's blood.
Economic nationalism is a root cause of war and international conflict is the result.
In most cases of welfare legislation the favored group's foreign competition is either eliminated entirely or severely curtailed. For example, in order to enhance the price of sugar cane in the United States, we have not only a very high sugar tariff, but severe import quotas. This causes domestic prices to rise and depresses foreign prices. They may also learn to nationalize private property and tear up contracts. The roots of conflict begin to grow.