size of government and the competence of government

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This is a collectivist viewpoint. Since when has forcibly collectivizing people worked efficiently?

What's wrong with, say, the Nordic welfare state model? You are American and your culture is less homogeneous than a typical European country and I think your viewpoint is easy to relate if I think it like this. It's more safer to implement molds into populace if that populace isn't that varied.