Countries with high inequality and belief in luck and connections tend to support high taxes and welfare. Contrary to common belief, large welfare states and redistribution don't necessarily harm the economy. Conditional benefits and tax progression can actually boost employment and economic performance. People care about relative incomes and may not get happier as societies grow richer. Governments aim to reduce consumer rivalry by taxing labor, even without the need for redistribution. Introducing pro-growth policies alongside welfare programs can also benefit the economy.