This paper concedes that the argument of the right, that the welfare state both contributes to the economic crisis and undermines work incentives, has some validity. The right is unable, however, to demonstrate how the economy can do without the welfare state, and it cannot produce a political strategy to get rid of it. For its part the left, while criticising the welfare state for its ineffectiveness, for being repressive, and for serving a political- ideological control function, is equally not convincing about an alternative society. Both criticise, but both, in the interim, need the welfare state. The paper concludes with a discussion of possible political strategies and goals available to right and left, and analyses the levels at which the political process concerned with these strategies takes place.**