Not just ideology, the size of government in Scandinavia is way smaller than in other developed countries. See the economist article last week about this subject.
It's true that regulations are relatively low, in terms of invasive bureaucracy in the economy. Yet in Denmark we have a 37-hour maximum workweek, 8 weeks of vacation, and strong unemployment benefits, and all that doesn't seem to be ruining the country. Perhaps that can't be replicated elsewhere, but I don't see a solidly established relationship between working hours, unemployment benefits, and economic prosperity.
Out of interest, can you find out where the budget of the government in Denmark is spent in, and in what proportions ? On top of that, how much of welfare system relies on private actors instead of governmental/public ones?
