Abstract
Two models of the welfare state are outlined: the Keynes-Beveridge and the post-Keynesian or Advanced. The former corresponds to the post-ware welfare state in English speaking countries which is in disarray. The latter represents an approach to welfare found in such countries as Austria and Sweden which seeks to harmonise economic and social policies and to build consensus around collectively identified national interests. The Advanced welfare state suggests a way out of the economic crisis of welfare capitalism without sacrificing the values of equity and social justice.