And we had a state where wealth was rather evenly divided and with many people that did well. Also we had rather low crime and view people had to worry that they could be poor when they are old.
Than came globalization and the notion that the "free market" will be always right and will make things (automatically) perfect. (That was promoted by Mrs. Thatcher and Mr. Reagan, to name two early adopters). Than the governments in Germany and all over the world started to bend. "It is the free market, we can not do anything against it" was said by them. "We have to bend our laws to comply with the free market".
So it was going all over the world.
What do we have today: All over the world, people get richer ... 1% of the people. The others get gradually poorer and the lowest part of the people are really poor, because in Germany it is already clear, that a big part of the people working today, will not be able to live from the pensions they will get.
So the "free market" took over and the "free nations" are enslaved by one economic theory, that nobody has ever proved.
We are all at the mercy of "unlimited growth". Our economic systems are only stable, when growth is guaranteed. In biology, unlimited growth is called cancer.