The jury on the involvement of private welfare-to-work companies is out at the moment.
The relationship between social welfare spending and net private domestic investment since the end of World War II tells a troublesome tale.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
For its principles, the fund drew on tort law, private and government insurance, and welfare, says George Priest, a professor at Yale Law School, but with no consistency and no cap on the amount paid other than Mr Feinberg's sense that Congress did not want a runaway programme.
He proposed ending welfare and wanted to see private enterprise used to tackle urban poverty.
It takes money away from productive uses in the private sector and reduces the overall economic welfare of the nation.
Another argument is that private contributions reduce the need for government welfare.
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We should also terminate all corporate welfare programs, such as the Overseas Private Investment Corp.
The welfare system is being overhauled to let private firms and charities compete for more contracts.
"Out-of-control dogs are just as much a threat on private property as in public places, " said animal welfare minister Lord de Mauley.
The best-fit estimate represented by the downward-slopping line in the chart reveals that for each one percentage point of personal income that social welfare spending rises above 10%, net private investment falls by about 1.2 percentage points of personal income.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
Social Welfare Spending is displayed along the horizontal axis and Net Private Investment on the vertical axis.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
The second risk is that the Nordics will let slip a golden opportunity to reform welfare and roll back the state's interference in the private sector.
Between 1949 and 1974, annual net private investment averaged 10.3% of personal income, and although social welfare spending was constantly rising during this period, the above chart suggests it does not appear to have had any appreciable detrimental effects on new investment.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
While Labour was quick, after it was elected in 1997, to seize upon the welfare problems presented by an ageing population, its first initiatives focused on private pension provision.
Mr Bush is challenging not only the assumption that the welfare state grew up in the 20th century to address the social problems private charities were unable to meet.
The private Edhi Foundation, for instance, runs a fleet of 1, 800 ambulances and a slew of other welfare services for the poor across Pakistan.
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