I'm from Norway and the economy is quite regulated. We're still/therefore (take your pick) very successful [1].
Macro economy is complicated. It seems obvious to me the it's not as simple as "just let everyone run free". On the other hand regulation has it's disadvantages as well. Complicated.
Measuring "regulation" isn't straightforward, but based on the Heritage Foundation's criteria, Norway has a relatively light load. It's basically on par with the US.[1] Its a very free economy by international standards. Venezuela is near the bottom of the list, just above North Korea.
Economic regulation and the extent of the social safety net can be quite independent of each other.
