Citation needed, unless you simply mean "the economy will collapse, making welfare spending impossible".
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I think that this is largely true, as a correlative matter, but the issue is diversity containing both high-trust and low-trust cultures. Non-diverse societies can still be low-trust, e.g., barred windows in many 3rd world countries (and even 2nd world like Peru/Mexico).
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Like the all-black neighborhoods where ALL the storefronts have steel gates that get locked when the store is closed.
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