Europe and the US aren't the only 'Western World'... I thought I'd comment on this briefly because in Australia and New Zealand we have similar government set ups to those of Britain and EU (as opposed to the US).
We have had free public healthcare for decades, fantastic synergy between the public and private sectors, free education, la la la. I am strongly against centralising power because I think it can run into a wealth of problems, just like you have mentioned. I like that in Australia for example, the Prime Minister doesn't have the final word but there are a variety of different political parties that work together to make decisions. I think most people over here have a high quality of life, and that is reflected through the fact that many of our cities are ranked highest in the world for livability. Basically, I think the system we have is working incredibly well. I do think there is a strong link between societal issues and the structure of the government.
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