..............Why is this significant for the vitality of religion in America? A recent study of 33 countries around the world by Anthony Gill and Erik Lundsgaarde, political scientists at the University of Washington, indicates that there is an inverse relationship between state welfare spending and religiosity. Specifically, they found that countries with larger welfare states had markedly lower levels of religious attendance, had higher rates of citizens indicating no religious affiliation whatsoever, and their people took less comfort in religion in general. In their words, "Countries with higher levels of per capita welfare have a proclivity for less religious participation and tend to have higher percentages of non-religious individuals."
Gill and Lundsgaarde show, for instance, that Scandinavian societies such as Sweden and Denmark have some of the largest welfare states in the world as well as some of the lowest levels of religious attendance in the world. By contrast, countries with a history of limited government — from the United States to the Philippines — have markedly higher levels of religiosity. The link between religion and the welfare state remains robust even after Gill and Lundsgaarde control for socioeconomic factors such as urbanization, region, and literacy. The bottom line: as government grows, people's reliance on God seems to diminish.........
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Gill and Lundsgaarde show, for instance, that Scandinavian societies such as Sweden and Denmark have some of the largest welfare states in the world as well as some of the lowest levels of religious attendance in the world. By contrast, countries with a history of limited government — from the United States to the Philippines — have markedly higher levels of religiosity. The link between religion and the welfare state remains robust even after Gill and Lundsgaarde control for socioeconomic factors such as urbanization, region, and literacy. The bottom line: as government grows, people's reliance on God seems to diminish.........
More Here