Quote from Options_Noob:
Well to be fair Germany and the Nordic countries are also welfare states. They aren't doing so bad.
The history of "Germany and Nordic countries as welfare states" has not yet been written. It's a matter of degree. Even America was OK when the welfare aspect of our society and economy were small relative to the private sector and people's expectations. A "bit" of social system support can be deemed desirable. It's when the Social state becomes too large that the system breaks down... like in Greece (and soon to be... AMERICA.. if Obama has his way).