Perhaps the error in the thinking is there is any incentive or intent for the individual to improve.

I think it is just the oppoesite. The intent is to build a voter base that is dependent upon the government to provide benefits forever in return for re-elections.

There is no improvement required in their strategy what so ever.

The flaw (one of many) in their thinking? At some point the number with their hand out will so far excede those who pay into the government (taxes) that the benefits will wind up being reduced. A side effect of course will be the dependent will adjust as they have no other choice. Being that the dependent overwhelm the system eventually just by simple pro-creation.....the standard of living will continue to reduce.

One big advantage (it could be viewed as an advantage) is that no matter how bad the standard of living descends to it will be better than they had before the handouts or where ever they came from.

We are, like it or not on that path. Enjoy what we have today because it is the best it will ever be after today!