http://en.wikipedia.org/wiki/Economy_of_the_Republic_of_Ireland#The_welfare_state
The Irish government runs a Welfare state system. The government provides
free tuition for education at all levels for all EU citizens, and free primary and secondary education for all residents. The government also
runs the public health service with hospital care free to all and lower earners or people dependent on benefits receive all medical services for no charge, including dental, oral and aural services. Other citizens get all such health services at a reduced/subsidised rate, or can claim tax-relief on medical expenses not covered by the state. People who are unemployed
receive unemployment benefits and retired people are entitled to a state pension - both benefits are quite high by international comparisons. However, recent changes in the cost of living in Ireland have greatly eroded their relative buying power. Pension payments were €223.30 per week in 2008
So I guess you admit that having a generous welfare state vastly reduces the cost of living and creates a situation at which government programs can be had at a low cost?