They probably meant it more in the Schumpeterian sense than the Marxist one but that could be a matter of perspective itself but I heard a radio broadcast a day or two ago in which the UK Conservatives were suggesting that the UK welfare state has to undergo a process of "creative destruction". What do you think?

I'm not asking for anyone to express their knowledge of the UK welfare state specifically, just welfare states in general.

I actually think that wage inflation among managers and services becoming top heavy with management is the problem and is unlikely to be touched by any creative destruction process.