Mix of the two works best a la Australia + Most of Europe.
This means that the government/government business enterprises (GBE's) handle the key infrastructure and the provision of public goods (water, electricity, public healthcare as a safety net for those that can't afford private, transfer payments), and then private businesses handle the provision of consumer goods.
Obviously a complete totalitarian nanny state isn;t really ever a good thing, welfare or not. But the governing bodies ensuring a minimum standard of living for it's citizens? That should be one of their primary responsibilities, entailing welfare payments, provision of minimum standard of healthcare, etc etc.
This means that the government/government business enterprises (GBE's) handle the key infrastructure and the provision of public goods (water, electricity, public healthcare as a safety net for those that can't afford private, transfer payments), and then private businesses handle the provision of consumer goods.
Obviously a complete totalitarian nanny state isn;t really ever a good thing, welfare or not. But the governing bodies ensuring a minimum standard of living for it's citizens? That should be one of their primary responsibilities, entailing welfare payments, provision of minimum standard of healthcare, etc etc.