ABSTRACT
In the existing welfare states, unemployment and income disparity are severe problems and excessive welfare expenditure has threatened government finance, driving it towards a budget deficit crisis. Their over-generous welfare benefits have been criticized for diminishing welfare recipients' work incentive. To cope with these problems comprehensively, efforts need to be made to find a new welfare model. In the establishment of a new welfare state model, several essential elements are to be considered: unemployment, income inequality, financial crisis, stagnation and deteriorating work incentives.
