The wellfare state is builded by high income taxation of workers.So they are paying the goverment for their free healthcare,education and pensions.
While that is not communism, it does provide a drag on the economy because of inherent government efficiency, and so the people don't get as much out of there money as they would through private institutions.

A non-welfare state will have a better economy and so its people will be better off.

Crazed Rabbit