[msikora]

The obvious solution for healthy society is mixed economy - free, but reasonably regulated, market as the engine of prosperity and strong welfare system so that nobody goes hungry, without education or without healthcare. Some Western countries got close to the right balance, e.g. Germany or Canada. USA got the market economy quite right, but I think a bit better social benefits (esp. universal healthcare) would benefit the society as a whole. On the other hand, we have seen great successes of free market in the past few decades, for example the former Eastern block countries, esp. the ones that managed to get into the European Union. I grew up in Slovakia and saw the country go from failing socialist economy to high-income advanced market-based economy, while still keeping most of the generous benefits which are generally in-line with the rest of the EU. The GDP per capita literally went 10x in the past 30 years. Other classic example is of course China (although here the democratization process didn't take place). Or even the Scandinavian countries introduced many pro-free-market reforms in the recent decades with great success, while still having very very generous welfare system.

As always, the answer is in a healthy balance.