This book presents an alternative theoretical approach to the study of the transformation of the modern welfare state. It draws upon the undogmatic Marxism of Gramsci in order to deconstruct the Marxist tradition and develop a general theory of capitalist regulation which emphasizes the primacy of the political. In so doing, it seeks to integrate French regulation theory and British state theory within the broader framework of discourse analysis. This theoretical framework is applied in an empirical analysis of the Danish variant of the Scandinavian welfare state model. The book is written for advanced undergraduates, postgraduates and professionals within the field of political theory, institutional economics and sociology.