Since the beginning of the New Deal, American liberals have insisted that the government must do more—much more—to help the poor, to increase economic security, to promote social justice and solidarity, to reduce inequality, and to mitigate the harshness of capitalism. Nonetheless, liberals have never answered, or even acknowledged, the corresponding question: What would be the size and nature of a welfare state that was not contemptibly austere, that did not urgently need new...