We used to pity our grandfathers, who lacked both the knowledge and the compassion to fight the Great Depression effectively; now we see ourselves repeating all the old mistakes.
What it all comes down to IMHO is human nature. Whatever the system, people are going to try to game it. And eventually, even if it means infiltrating the government overseers, they are going to succeed.
The only solution is to have a new kind of society, where individuals feel a sense of loyalty and belonging to the community, and do not always act on sheer self-interest. Is that possible?