Not a problem, jake... the site doesn't like long responses today. I do think, however, regardless of our differing views, that the welfare state alluded to in the original question does encompass health care. It's a significant part od the debate here in the U.S.
This, from a site called Taxpayers Association of Europe :
"... Great Britain had the lowest growth rate of major European countries in the 1950s and 1960s, yet by the 1980s and 1990s it was growing faster than most of the major continental nations. Why? After 1970, the tax burden rose sharply in Western Europe, but much less so in Great Britain. By 1990, taxes on average were significantly lower in England than in such major continental nations as France, Germany or Italy. Lower taxes meant more capital formation, more entrepreneurship, more output. London has again become clearly the leading commercial city of Europe.
Sweden, by contrast, has declined in a relative economic sense. By virtually every indicator, Sweden was one of the world�s three or four richest countries in 1970. Today, it is not in the top 15 countries by any measure, and per capita income is actually falling below the average of the European OECD countries. A crushing tax burden has led to a reduction in capital formation, a decline in hours worked, and general stagnation. High taxes, low growth."