I suppose it depends on your definition. Most people who use the term generally use it to mean "Government doing anything useful". So, building housing, "nanny state"; providing health care, "nanny state"; social safety net, "nanny state"; regulations saying your food can't be poisoned, "nanny state". And, there is a lot less of all that stuff than there used to be in, say, the 70s. If you use it differently from that you're very much in the minority and can't be surprised if people misunderstand you.
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