The problem here is one largely of perspective. The British have good welfare programs. OK, they aren't 'Good'. They're inefficient and expensive and have many threads worth of stuff wrong with them. But the US has very bad welfare. They pay about the same in taxes but get little to nothing for them.
Here's a classic example:
http://www.npr.org/templates/story/s...oryId=92592545
Take a look at the financial profile of these poor illiterates. Now, before anyone reacts to the small amounts of money, let me remind you that everything here is cheaper. For benefit of comparison, they spend $250 a month on groceries. Thats about the same as we do, and we live very well with my expensive foreign palate. They also spend $100+ a month on electricity. We spend $40.
So basically we have two utterly useless people paid by the government to sit in front of multiple TV's and eat all day. Suddenly our chilly friend makes a lot more sense with his hatred of welfare, and that's the American perspective. The hopeless are paid by the hardworking to watch TV all day.
Of course, we British would read that story and say, give them a bus pass (or start a subsidised bus route too and from that housing complex) and make them pay rent, so that they have to work. That's our idea of welfare: Providing support so that people can make a life for themselves.
And we could make them have to run for the bus...
They do need a welfare reform. But the democrats are more likely to throw money into providing helthcare for the useless than to reform the system in the way it needs to be. Because that would be 'socialist'.