AOA, please see my reply to Badr's post below as it somewhat addresses your response; I mention there that there will of course be exceptions in people who can't take care of themselves. And as for the economic argument of whether it is sustainable, and the tendency for shareholders to demand and for executives to impose ever restrictive wages: this is precisely where higher collective values can have a far more profound effect than any loophole-laden government policy or program which generally and invariably ends up benefiting the middle class and hurting the very poorest. These are some of the very convincing arguments I've come across in Friedman's lectures on youtube (this includes good, if not entirely agreeable, explanations for why healthcare costs more in the US), though the special emphasis on values is perhaps mine.
This is in keeping with observing the larger arc of history and noting that the values held by the average person today are in fact much higher than those held by the average person even in the recent past. And if nothing else, Islam ought to make one an optimist in believing that we are heading towards ever higher strata of civility and values, and so there is no reason the average business man and shareholder in the future can't voluntarily decide to take more care in decisions so that the workers up and down an organization are paid a reasonable wage.
With regards to avoiding a "free for all", that depends what one means by free I think. I think we should be free to succeed and fail by our own hands as this is the reality in which we're meant to build our heaven and hell by our own hands, to be inherited in the hereafter. This life will feel but a day long as per the Qur'an itself, so there's little time to live it infantilized by a nanny state. I don't agree that this implies a "free for all", as there still ought to be a state that truly looks out for the weakest members of society that can't take care of themselves. But such people are a minority and the size of government and its budget should reflect this; most of us are perfectly capable of being strengthened enough to stand on our own two feet, otherwise there would be little audience for a book such as the Qur'an.