Does this happen in your country?

it totally is. where do you think the wealth goes in communist states? to the people or to the corrupt bureaucrats? the answer is simple and does not need any deliberation

>yet the nationalist policies of bismarck brought welfare to the german

Bismarck brought in welfare to get one up on the German SPD.

nationalism is for the nation. And the nation suffers when the wages of the people rise to high, since it loses it's competitive edge