Well we enjoy the effects of the "social" engine of grouth in Spain now a days(among the other problems as a construction bubble, etc..)
Basically you have people trying all sort of tricks to recieve a salary from the government just because they deserve it. That way they don't have to work anymore. People tend to look at this as a right and the ones who go and earn their money with their effort are regarded as "dumb", after all it makes no sense to work if you don't need to. Maybe this is a cultural thing, but I find dangerouse to reinforce people in receiving money with out contributing with their job.
I don't know if people should receive actual money, but it makes sense to me that they receive access to safe housing, food, healthcare and education. I don't think this can work in poorer societies, but in ones which can afford it, well, it seems most humane. If you aren't working, and can, well you won't be able to brag to your friends about having the latest ipad, but you should still have a place to sleep and food to eat. I think most people don't like sitting idly by all day long and since a lot of fun things cost money, they'd be willing to sacrifice some of their time to be able to afford those other things.
I have been to Norway a few times and I liked the way they managed to balance things out there. Also, I recently watched this TED talk: http://www.ted.com/talks/richard_wilkinson.html
How economic inequality harms societies and I thought it was interesting.
I agree in the part, that is more human to share with those that don't have. But giving all the basics to those able to work will back fire ( as it currently does in countries like spain), people will go to great lengths to cualify as a "payable non worker".
As politicians earn their possition with votes, they tend to buy votes increasing this "social" solutions. Over time money spent in this piles up and reaches unreasonable sizes(and fuels corruption aswell)
A completely different scenario are the health care, housing and education of on-risk population, I meen kids and old or ill people. Here in Spain the system has been abused (mostly by the lack of value that people gives to Free stuff felt as a IS their right to enjoy no matter what, on oposite to Ariely's studies).
I still find great that anybody may have access to the latest cancer treatment or heart surgery( while the per capita cost of health is lower than in the US).