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It seems to me that you are greatly exaggerating the influence of the welfare state. In our country, the welfare state does require us to pay our taxes in order to provide for the poor. True enough. But there is enormous room left for anyone to do more and experience the moral development to which you refer. 

The welfare state in the United States does little more than provide a decent minimum for most of the people it cares for. The largest program for years was AFDC, which provided only a modest living for poor mothers and their children. Another program (not usually thought of as welfare) is social security. It provides an average of about $1,000 for older Americans. Think about that -- $12,000 per year. Is that anything more than a minimum required to avoid destitution?

Again, my point is that there is plenty of room left over for people to do more than the welfare state requires and development their moral character by doing so.