'Sure western countries could build economies based on cheap labour to rival china and India, but are they the kind of countries we want to emulate?'
Just a little history lesson - in the 1890s the US had cheap labour, high industrial production and lots of industrial accidents (with no insurance) it is they who are emulating you!
And things hanged in America because they were bad, several US governments (state and federal) changed laws which were part of leading to where you are today - but there was also people like H Ford, who raised wages for his workers because nobody could afford to buy the cars he was producing (well other than the rich) - increased consumption drives economic growth, increased minimum wage / welfare drives consumption - India, China (and now Indonesia) are running on export-lead growth; so while you buy their cheap goods they don't need to improve wages/conditions.
That may be one of the biggest impacts from the financial crash.
And @Emacs, what Jack already said, quality over quantity. Just because you linked two articles doesn't mean they weren't complete bullshit (i haven't read either so i can't tell)
And at - increased poverty since welfare was introduced - you do realise the correlation does not imply causation, right? It is possible that poverty in the absence of welfare would be even worse.
And lastly, you realise you're supporting the Marxist position - welfare is preventing the socialist revolution, people wouldn't just magically find jobs, but in the presence of America's super rich they would be very angry.