Avram, child care allowance (and BTW, the US has allowances in the form of tax credits)s have been cut drastically and health care is semi-private (the National insurance Institute acts as a collection agent for the HMOs and also subsidizes them regarding the basic plan however all offer supplementary policies at extra cost on an actuarial basis). Pensions were privatized and converted from an entitlement basis to an actuarial basis.The phone company was privatized decades ago (and very quickly the time for getting a line went from years – and dependency on who was considered most in need and who had the most protektzia – to a couple of weeks.
As for job creation, whether or not you get the mitzva would depend on the machloket regarding whether or not mitzvot require intent. However, we compel people to give tzedaka so apparently it is more important that the needy are helped. I personally think that it is more efficient and a better form of tzedaka for the invisible hand to do so. The role of government is to pursue policies, both economic and legal (e.g. maintaining the integrity of contracts and property rights), that promote growth without inflation (thus a sound currency is a Tora value – see Shabbat 33b). As I pointed out, it is not only the jobs you personally create but also the jobs that are in turn created. Similarly, when you buy items you have a share in creating all of the jobs that are involved. When you save you also have a share as the bank lends money that creates jobs.