"You cannot carry on forever squeezing the productive bit of the economy in order to fund an unprecedented engorgement of the unproductive bit"

In this quote, Daniel Hannan is revealing his belief that it is not sustainable to constantly count on the hardworking and productive individuals in the economy to fund the excessive and ineffective aspects. He is suggesting that there requires to be a balance in between the 2 in order for the economy to prosper. By "squeezing" the productive bit, he implies putting excessive pressure and burden on them to support the "ineffective bit," which refers to the non-working or inefficient parts of the economy. Hannan is cautioning versus this imbalance and promoting for a more equitable circulation of resources in order to keep a healthy and thriving economy.