When these countries developed their welfare states, mainly after WWII, they were pretty socially homogeneous. Your taxes paid for things for people who looked like you.
That has changed in Europe, and was never true in the US. You’re probably familiar with the work of Robert Putnam, who has shown that diversity erodes social solidarity (duh!). [https://en.wikipedia.org/wiki/Robert_D._Putnam]
Conservatives ought to look at how the completely unsentimental Chinese run the ferociously-capitalist society of Singapore, with respect to both ethnic diversity and welfare measures. [ https://en.wikipedia.org/wiki/Central_Provident_Fund ] We should consider adopting some of the types of solutions they have.