It is more of a welfare state, with extreme social libertarianism, than a believer in the state ownership of the means of production.
The meaning of socialism is not limited to state ownership of the means of production, but extends to include states which engage in collectivist redistribution.
socialism \So"cial*ism\, n. [Cf. F. socialisme.] A theory or system of social reform which contemplates a complete reconstruction of society, with a more just and equitable distribution of property and labor. See Communism, Fourierism, Saint-Simonianism, forms of socialism.
Source, Webster's Revised Unabridged Dictionary, © 1996, 1998 MICRA, Inc.