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　　Welfare state is a form of industrialized state,which is the product of the development of capitalism to a certain stage.After World War II,western European countries established the welfare state system one after another,which was helpful to realize full employment,equal distribution and extensive social welfare to the maximum extent at that time,and to maintain the economic stability and social stability of capitalist society.After the 1970 s,however,because of the impact of globalization,the oil crisis led to a 1973-1975 world economic crisis,and due to the rigidity of the welfare state system,the economic crisis led to a crisis of the welfare state,further embodied in these crisis unemployment crisis,the aging crisis,fiscal crisis,social crisis,institutional and cultural crisis.They make the welfare state increasingly difficult,welfare state reform is imperative.

 

　　In the face of high unemployment,high inflation and low economic growth in the welfare state of the 1970s,keynesianism was helpless.At this time,hayek and friedman put forward neoliberalism based on classical liberalism.The thatcher government in the 1970s was a prime example of neoliberalism in action.

 

　　Hayek pointed out that the market is the most fair and effective in the allocation of resources.Social equity should be relative equity rather than equity in the distribution of wealth,and equality of opportunity rather than equality of results should be advocated.Hayek regarded people as citizens in the private sphere and emphasized rational people,but neglected or even denied their sociality in civil society,which made the connection between citizens and citizens,the state and citizens cut off and the regulating role of the state's own functions restricted.

 

　　The best adjustment of individual welfare in the market society should be made by individuals themselves,and the state should be opposed to the redistribution of individual wealth by means of redistribution.They want to cut welfare,cut spending,boost business through tax breaks and speed up privatisation.

 

　　Market freedom has become the mainstream view,the government only plays the role of night watchman,its mandatory behavior should be replaced by the market freedom and efficiency,institutionalized social welfare can only bring the waste of resources.Institutionalized social welfare should be actively curtailed,and appropriate levels of state subsidies should be provided to make up for and replace social welfare by providing selective social relief.

 

　　Neoliberals argue that the economic crisis was caused by the state's excessive regulation of market mechanisms.They agree that"supply creates demand".Governments use supply to boost saving,investment,employment and growth.

 

　　After Margaret thatcher came to power in 1979,her government began to make important reforms in the welfare sector.This welfare state reform is mainly carried out in a market-oriented way,emphasizing individual responsibility and guaranteeing benefits through multiple bodies.

 

　　We will include the retail price index in the calculation of basic state pensions,reduce state payment obligations,and vigorously develop the occupational pension system and the private pension system.In 1988,the British government reform forced all enterprises to implement the occupational pension system,so it promised certain preferential policies to enterprises.At the same time,the state encourages the provision of a wide variety of private pension plans,and British citizens can choose and buy corresponding private pension insurance.

 

　　On the one hand,the thatcher government established a new health administration to provide some non-medical services through the market.On the other hand,we will tighten the qualifications of doctors,control medical expenses through budget,and speed up the privatization of state-owned hospitals.The government also encourages private medical services and provides financial support.

 

　　The thatcher government encouraged domestic enterprises to create employment opportunities through various means,such as offering certain financial subsidies to enterprises that recruited workers,launching employment training programs,formulating and implementing a series of employment training laws,etc.,so as to increase employment opportunities and reduce unemployment rate.At the same time,the eligibility for unemployment benefits should be strictly restricted,the standard of unemployment benefits should be lowered,the supervision of those who receive unemployment benefits should be strengthened,and strict sanctions should be imposed on those who do not actively seek jobs.

 

　　On the one hand,we should encourage the purchase of public housing,especially the private purchase.On the other hand,reduce government input and welfare expenditure.The government gradually reduced the construction and supply of public housing,and changed the public housing construction from government-led to market-led.

 

　　On the one hand,we should control public expenditure in higher education sector;on the other hand,we should reform the financial aid system.The thatcher government reduced education budgets,cutting grants to universities and their research institutes;At the same time,the"student loan program"was implemented,and the income support,unemployment benefits and social welfare for full-time college students were cancelled.

 

　　On the one hand,the reform alleviated Britain's welfare sickness and promoted social progress and economic growth by redefining the rights and responsibilities among the state,society and individuals.But at the same time,the inadequacies of the market economy are gradually shown,that is,the gap between the rich and the poor expands,and the degree of social inequality also expands.

 

　　In the 1990s,the"third way"theory was put forward by European social democracy in the context of globalization.At its core is the question of whether and how social justice and the market of capitalism can be combined.The basic principle is to change"negative"welfare into"positive"welfare.The British Labour party's third way,or blairite,is a prime example.

 

　　As the expenditure of traditional welfare system expands day by day,the financial burden of the government is increasingly heavy.Tax increases discourage people from working,and the effects of"welfare sickness"are growing.Thus,the"third way"absorbed the principles of the liberal market,advocated"social investment in the state",changed the passive welfare giving,and provided active optional welfare in the form of prevention in advance.To alleviate the responsibility of the government and rebuild the responsibility sharing mechanism among the state,society and individuals,other subjects besides the government should also assume their own responsibilities.

 

　　The traditional"all-encompassing"welfare system of the welfare state inevitably leads to the dependence of citizens.The top-down welfare policy makes citizens take the enjoyment of rights for granted and neglect the commitment to obligations.Therefore,"the third way"proposes to rebuild the moral ethics of work,advocate the correspondence between rights and responsibilities in the whole society,share rights and risks,and adjust the power and responsibility relationship between the state and individuals,so that the two can form an interactive mode of mutual coordination and responsibility.

 

　　In the process of welfare state reform,on the one hand,it still adheres to the traditional European values and advocates"fairness,freedom,equality and social solidarity";On the other hand,it actively introduces market mechanism and adopts competitive means to improve the efficiency of welfare supply and the quality of public service supply.Giddens believes in achieving security goals in groups,such as providing basic security for people who can't work and a diversity of life goals for others.We should ensure that all members of society have corresponding political rights and obligations.On the basis of promoting fairness,we should make use of the market to improve efficiency and give consideration to the realization of social fairness and efficiency.

 

　　The reform of thatcher government achieved certain results,but it also made social life unbalanced and widened the gap between the rich and the poor.Make the regulation and control between individual,market and country loses good effect.Therefore,it is necessary to re-examine history,make up for the shortcomings of thatcher's reform and adjust the regulatory relationship among the government,the individual and the market.After the Labour party came to power in 1997,Blair decided to take a"third way"between the welfare state and the liberal market economy.

 

　　In practice,the reform of the labor party mainly focuses on adjusting the structure of the pension market,aiming to improve the mobility and flexibility of the pension system and gradually integrate it with the market to improve its operating efficiency.On the one hand,on the basis of stabilizing the basic state pension,we should continue to strengthen the construction of the occupational pension system and strengthen the self-responsibility of the public.On the other hand,we advocate the establishment of the national second basic pension system to ensure the minimum living needs of the social vulnerable groups,so as to promote their actual living standards.

 

　　Mr Blair's government gradually transformed health care from a universal right to an individual responsibility,largely by reforming the national health service.He also does not agree with the demand management model,emphasizing that the needs of medical care should be based on the individual's performance,through health education and health care to promote the risk awareness of the public from the perspective of prevention,so as to effectively reduce the financial burden of the government in the field of medical health,reduce fiscal expenditure.

 

　　New Labour government emphasizes the transformation idea,promote people from welfare to work,promote employment,promote the Labour markets to employment,to urge the laborer that labor ability to full employment,to strengthen its individual assistance and self protection ability,at the same time,through the market in solving the employment problem of welfare system reform at the same time,to reduce the burden of unemployment insurance and welfare benefits from unemployment brings the benefits of disease,to promote full employment,social progress and economic growth.

 

　　The minimum wage was abolished during the conservative government's reforms,but it was revived in a new era.The introduction of the minimum wage on April 1st 1999 benefited 2m people,especially 1.3m women and 200,000 young people.In addition,single parents,domestic workers and minority workers are also groups that benefit.Since higher wages will lead to higher costs for enterprises,which will lead to the consequences of layoffs,the government will protect the interests of the poor and reduce their poverty level in a positive way.

 

　　The reform carried out by the Blair government has covered all aspects of the existing welfare system,and the forms of the reform have taken on the characteristics of diversification,including both legislative and administrative means.We will not only maintain the role of the government in providing support and oversight,but also actively mobilize market and social forces.At the same time,different from the reform of the conservative party,it pays more attention to the balance between fairness and efficiency and the coordination between the supply and demand of welfare,and puts forward the adjustment direction for specific welfare clauses,achieving good results in controlling welfare expenditure and reducing the financial burden of the government.However,this reform is relatively moderate and tends to be cautious and conservative.It is only a partial adjustment and coordination of the current welfare system.Problems such as the gap between the rich and the poor caused by high welfare still exist.

 

　　When the welfare state was established,it played an indelible role in stabilizing social order and promoting economic development.However,with the change of population structure and social environment,the rigid welfare makes the financial burden unbearable and the social operation efficiency low.The reform of welfare state has necessity as well as necessity.However,the welfare state still has the legitimacy of its existence.Therefore,the welfare state should not die out,but balance the relationship between individuals and the state,rights and obligations,fairness and efficiency through constant remodeling and reform,so as to promote social fairness and progress.