This study aims to investigate the relationship between welfare state transformations in Algeria and the coercion of the social question in the context of a crisis economic situation. It attempts to understand the historical and ideological contexts that contributed to the emergence of the social state and state capitalism as well as social policy shifts in view of the economic crises and the Development project failure. This study will try through numbers and statistic comparisons, to learn about present status and the future of the welfare state, in context characterized by the state of protest expressing social outrage accumulated over the past few years, where the practices of state privatisation and aberrations of the financial oligarchy are one of their most important causes and factors.