Lee, other countries are "free" of that belief because they either have a gun to their head as in the Middle East, or have been brainwashed to believe in government force as in Europe. America was not founded on the belief that government could, or even should, solve our problems. America was founded on individual liberty being the solution to the human condition. Any other such belief is, and I know I'll get hammered for this word, un-American.
Why did the fall of the USSR spark (or confirm) the belief that government doesn't do much right? Well, the USSR fell, that's why. The USSR, as we all know, was the epitome of socialism. They were communist, through and through. It was a government of elites that dictated who could have what resulting in widespread poverty amongst the citizens. Even China, as communist as that country is, has figured out that some level of capitalism is the only way they can grow their economy. The USSR never figured that out, and if they did, no one would admit it.
The biggest problem with socialized medicine is that, as in Canada, the world's model for health care, costs are low, but so is supply. In the US, there isn't a 4-6 month waiting period for simple procedures like an MRI. A prime example of government forcing prices down is the so-called deregulation of energy providers in California. All it did was produce black-outs. You can't force prices down while maintaining the other economic standards of supply, demand, and production costs.
Government programs are inefficient because the people running them are inefficient. Government itself is inefficient. Remember how Nancy Pelosi promised the American people that she and her democrat buddies would lower gas prices? Great job, Nancy. Her "lowering" of gas prices has gotten us to $4 a gallon. I really hope our congress stops lowering our gas prices. If they get any lower, I might have to sell my car.
I'm sure most people in America could point to a cute little park and a nice school and say, "yeah, our government rocks!" Yet, anyone who lives in or near government-rich cities like Pittsburgh, Detroit, New Orleans, or Philadelphia may just have another perspective. Local governments are limited in what they can do. They don't have the tax base of a large city, a state, or the Feds. Local municipalites pretty much stay out of the way because they don't have the means to intrude into your life the way the state and federal guys do.
Now, your comment on greed is very telling. At what point are we paying enough in taxes, and at what point do we decide that if we want it, we'll pay for it ourselves? Why should we approve of the government continuously finding ways to spend our money for us? It's not greed, it's the fact that we earned the money. It's ours to save or spend as we see fit. Your view of wealth is very different from the true American ideal. This idea that wealth belongs to the state and we all get to keep a little piece for ourselves as long as the government will allow it is just ludicrous if you believe in liberty. At some point, it's OK for the people to say, "Enough is enough." If Uncle Sam wants to fund some new pork project, he'll have to figure out what other project to cut. That's what we have to do, right? We cannot allow, nor can we afford, to give any government free reign to endlessly jack up taxes. Government, by nature, is not fiscally responsible, but we're supposed to be all right with them deciding to take more of our money, forcing us to scrimp and save more than we already do? No, I don't think so.