First, it wasn't just a few people. The inability of milkmen to get paid is fundamentally what killed doorstep delivery, in Leicester at least.
Secondly, draconian fines and efficient spot checks don't seem to be either happening or working anywhere else. Not illegal working, not illegal alcohol and cigarette sales, nowhere.
I agree the current system sucks, but I dispute your contention that stamps is a better one. It's a simpler one, agreed, but in my experience it doesn't work.
update: This just in
http://www.cbc.ca/news/canada/hamilt...rice-1.2860704
The problem is threefold. Firstly, there are no household economic management lessons in schools, which is ridiculous. Trying to educate people after they are in trouble is bolting the stable door. Secondly, the level of commercial exploitation of benefit recipients is way out of control. The Government needs to get a grip on payday loans, gambling, etc; preferably in my view by banning the lot of them. Irresponsible lending caused 2008, and this is no different. Lastly, if someone needs a washing machine,
give them a washing machine. They can't drink, smoke or gamble that.
Back to Defence. The Government is not prepared to cut its commitments to match its capabilities, and has no money to increase capabilities within the current procurement system. There is also a generation of VSOs who aren't prepared to tell them so. This has only one inevitable outcome - defeat.