The United States has a medium-sized welfare state and nations in Western Europe have large-sized welfare states.
Which approach is better (or, to be more accurate, less worse)?
To answer that question, you want to compare living standards. And that means looking at how much people earn, adjusted for factors such as how much they get to keep after taxes.
The United States wins that contest. Americans earn more and they get to keep more.
That’s apparent when you look at average levels of consumption on both sides of the Atlantic. And it’s even true when you compare living standards of low-income and poor Americans to living standards for average Europeans.
But what if Americans only earn more because they work longer hours? When my left-of-center friends make this argument, my usual response has been that Americans choose to work longer hours because they have better incentives…
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Utopia, you are standing in it! 
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