Paul Krugman provides us with a simple graph that tells the story about the "exploding" welfare state. Employment security increased during the financial crisis but it has fallen back to trend along with the recovery. Social Security is also back on its long run trend. Healthcare is a long run problem but that is due to the rising cost of healthcare. The good news is that the rate of growth in healthcare costs has been reduced. We have a very inefficient system and there is plenty of room for improvement.
Actually, this story is not new. Many of us understood that our biggest challenge has been to improve the efficiency of the healthcare system. The exploding welfare system in the US is a figment of the conservative imagination.