I am been to Europe on many occasions and homes (actual homes, not cramped apartments) are not cheap at all relative to incomes. I am sure the peace of mind provided by universal healthcare and generous welfare programs is nice, but that's not how you build a strong economy. Incentives are distorted when you don't need a (good) job to live well enough. You get mediocrity, lacluster growth, poor customer service, and the other things Europe is known for. That's why you see people from all over the world come to America to build their businesses.