It's kinda cute that you use government involvement as one extreme, rather than the balance itself.
We only disagree about scope and scale, rather than anything fundamental. I agree that government is necessary to a functioning society, but only insofar as to keep citizens from infringing on other citizens' rights and freedoms (basically keeping honest people honest) and protecting society from outside forces who would do the society harm. Government, imo, should create a shell within which we all move and do and be as free as possible.
Within that shell, the citizens are responsible for each other, as individuals. One citizen should not be forced to care for another, it should be expected. Social norms should establish and reinforce such behavior. Excessive government involvement in the form of social programs relieve the citizens of that responsibility and breeds resentment between those that benefit from the programs and those that don't.