Yes. I'd say we've already pretty much lost a generation or two for some segments of our society. We need to cut off the flow of bennies and just accept the fact that we will lose another generation as people suffer and fail to understand "Where'd the money go?"
Eventually we will have a responsible generation. But until that happens, we will lose generation after generation -- and our reluctance to impose pain will be the major factor which keeps that painful cycle going.
I grew up by two Indian reservations. I have seen what the sick cycle can do to a culture. We (the US government) destroyed them. If a young man or woman leaves the rez, gets a good job or education, they are viewed as a traitor. Same if a young black man or woman leaves the neighborhood.
Being successful is viewed as betraying the race. Those who leave, leave everyone and everything behind. I know some who have, and it is like they are dead back home.
End the ghettos. Treat them like adults, not children. Realize that they will fail, until they choose to succeed.