That's quite a bold claim to make. I'm afraid I can't quite see what you mean by that. What I can see is that the countries with the most regulation and state "babysitting", as you like to call it, are the ones best placed in any poverty, development, health or well-being index. I really don't see what you can possibly mean by "badly failing at taking care of the sick, the poor, and the needy in almost every single 1st world country".
Either way, yes you are most likely statistically right. Spending on healthcare, poverty, and disabled individuals probably directly correlates with their well-being. You were presenting a case against a hypothetical ideal, and claiming it would not be able to fix social problems in a non-idealized setting. The counter-claim to that is that those very same things are not resolved in a society almost-exclusively run by state-governments, either. Whether 1st world or otherwise.
Remind me again how big the death-toll from government wars is?
Or perhaps simply how badly it is failing at taking care of the sick, the poor, and the needy in almost every single 1st world country?
You are right, outside of our idealistic view of the world, everything does collapse. I am watching it collapse right now, on the state's watch.
>"It doesn't work for impoverished, illiterate, uneducated people with the weight of poverty"
Luckily, those people have noble individuals such as yourself to tell them what to do, and fix their problems for them. Because you deem them unfit to do so for themselves.