Two possible solutions. One - kill Joe off before he can procreate because he is so stupid. Or two, end the socialism and make people responsible for their own actions.
I vote for personal freedom and individual responsibility every time.
There is a cost if you do not deal with the problems. If there were no uncertainties in the system, I would agree with you about making people responsible for their own actions. But everything from weather to fundamental characteristics of free markets such as the fact that competition tends to drive profits to zero or below before industry rationalization occurs means that people occasionally get down on their luck.
It's why the founding fathers put things like bankruptcy codes in place, which arguably is a form of socialism, with the state canceling perfectly legal contracts.
We could kill the stupid people, as long as I get to decide who is stupid.