> The average person gets no benefit from this
You are proving the point. The avg. person gets an enormous benefit from it, even in countries like USA, Japan or Korea with far less generous welfare. The gap in standards of living of somebody in the US and somebody in Georgia or Vietnam are ridiculous.
Poverty levels are roughly the same between Vietnam and the US from a quick search. Mean standard of living is a poor way to calculate inequality. If you have a link to a median one it would help to compare.