There is that grey area, in-between,
imo reaping the best of both worlds.
Yeah, I honestly don't know why I find it hard to be convinced by that. It's a discussion I keep having. It might be just a question of national political culture - some European countries traditionally had a very adverserial relationship between economic classes, while others had a more co-operative style. Its the former, like the UK, that ended up with triumphant neo-liberalism, and where social-democracy has never been a succesful tradition.
I guess one issue is, that that sort of social-democratic/welfare state has historically usually come about due to the fear of revolution and communism. That's why Bismark created the welfare state in the first place (with, I only recently learned, the support of Krupp, the arms dealing maniac). Once communism ceases to be even a hypothetical threat, once it ceases to exist as one end of a spectrum, the whole concept of what is the 'centre' shifts, and all the pressures that social democrats or democratic socialists can bring to bear, cease to work.
There's also the issue that capitalism is a global system, and it's not clear that individual countries like the Nordic ones can go their own way. All those countries are finding their system under pressure now, and also tend to find it hard to deal with migration. Denmark in particular has some very strict rules about immigration and is almost Trumpist when it comes to taking asylum seekers. I admit though, that mostly I just keep forgetting about the existence of those countries.