The Choice: Dynamic Capitalism vs. the Welfare State

Interesting article - Thoma seems to adopt a short run v long run perspective.  To the extent that an emergent and evolutionary process is at work I wonder:
1.  To what extent this evolution is path dependent
2.  To what extent we might look to Schumpeter for hints as to the any change in the direction of this evolution
3.  How useful is a comparison to other developed countries as opposed to a historical comparison to our own society
4.  What variables associated with the welfare state has Thoma omitted or minimized

That said, this is an interesting piece that overviews a macroeconomic tradeoff facing developing societies.

The Choice: Dynamic Capitalism vs. the Welfare State