| The history of human society development is not only a cyclical change of economy but also the evolution of crisis responses.In the economic and financial globalization trends, any country can’t exist in the world economy independently. That means when a country happens an economic crisis, the entire international community may envolve in the turbulence. The outbreak of USA economic crisis in 2007 is a typical example. The crisis caused domestic economic recession and spread to Europe and other developing countries. Eventually it evolved into a global economic crisis.From the crisis practices governments’ deal with, especially in the stage of unemployment rose, slowdown of economic growth and serious inflation different governments carried out different ways. As a result of different cultural background, policy focus and crisis degree, the results were not same.In some countries, the governments act as the last resort of banks, injecting liquidity to the market, helping the market play its own role. But more and more governments emphasis on vertical and horizontal linkages among government departments and policy measures of coherence to stimulate the economy. n general, the government act of dealing with crisis has several characteristics:from passive response to active prevention, lack of prospective and nationalization tendency.From the experiences government dealing with economic crisis, the Hoover government lost the proper time of solving those problems because of wavering between freedom and intervention in "Great Depression". The success of Roosevelt’s "New Deal" depended on strong government interventions and fit the desire of people to change the situation.The American loan crisis caused domestic economic recession and global economic crisis, which forced the Obama administration to carry out large-scale rescue actions. The main measures include:firstly, structural reforming of financial system and strengthening the supervision. Secondly,implementation of "nationalization" policy to rescue large banks.Thirdly, expansion of financial expenditure to stimulate economic growth. Fourth, making laws to regulate local government’s behavior. We can see no matter in the rescue range, strength or means of rescuing methods all exceeded the previous economic crisis. However, large-scale relief measures didn’t solve many deep level problems. Through the comparisons of depression and current economic crisis, though the two crisis happened in different backgrounds, they still show some characteristics in common. In the first place, technological innovation promotes the development of productivity greatly. But the political system and social structure didn’t change in same pace. The Great Depression occurred after 60 years of the second science revolution and the current crisis happened after 30 years of the third science revolution. The shorter time of technology transferred into productivity, the higher demand of changes in other fields. In the second place, economic strength and political pattern of the world changed after the crisis. As the largest creditor nation in the world, America gradually lost its advantages with the great development of new emerging countries and the defends between old capitalist countries. In the third place, in early 1929 and from 1980 to 1999 when the liberalism was in dominant, the United States issued many laws to relax supervision in the market. When the regulation of market itself played an important role, the country encountered many economic crisis. The subprime crisis was the result of relax regulation. Instead, from 1933 to 1980, when the "Glass Stigifa Law" played an important role, the United States didn’t happen so great economic crisis. In the forth place, the government didn’t carry out any steps to deal with the crisis until it became serious, no matter in the stages of accumulation, diffusion. At the same time, negative factors all influenced again when the economy recovered, where more issue were not easly to deal with.The sovereign debt crisis first appeared in Iceland. Then it spread to Greece, Portugal, Spain, Italy,Ireland and other countries. The economy recession of many countries became serious in recent years, like nightmares around them. It certainly related with the countries’ industrial structure, working condition of labor force and economic development. It also revealed the welfare state’s defects in common. Firstly, intervention of the government caused fiscal deficit higher. Public and welfare spending accounted for more than 50% of GDP in many countries. Secondly,high consumption and low savings stimulated the economic growth, but high taxes reduced the vigor. With the narrow space of domestic labor in intensive industry fields, more enterprises were forced to transfer to other countries. Thirdly, more old people and less new birth means the current pension system faced huge challenge. In order to alleviate the negative factors, many governments in European countries took similar self-help measures. On the one hand, slashed domestic fiscal plan. On the other hand, reformed the welfare system. But these steps caused some resistances from interest group and the public influenced. At the same time, these countries tried their best to acquire assistance from European Union and international community. What caused by fluidity may solve those problems in short time. But in the long run, it was a temporary delay action. What’s more, acquiring assistance from outside means the government should pay for it,such as market risk, political risk and moral risk.From the paths of governments’ measures to deal with crisis, one way is new liberalism. With the help of globalization, new liberalism spread its value orientation and evaluation standards to other countries, especially developing countries. ISo the capitalist country changed from national monopoly capitalism to international monopoly capitalism. By the way of economic globalization,the new liberalism established standards and orders according with its value. It also use the global capital flows to make economic penetration. Some scholars commented "Globalization is regarded as a positive factor,which can run in capitalism market, which eliminate the artificial distortion of politics, political interest and outdated customs." The new liberalism emphasizes" liberalization, marketization and privatization". The capitalist countries made changes in domestic economy on the surface. But from the global perspective,with the deepening of globalization,the relationships between nations are strengthening than any time before. The new liberalism actually made risk transfer, trade liberalizaion in essential, which increased the economic fluctuation and social unrest. The crisis happened in U.S.A showed the drawbacks of development mode supported by the government. Firstly, the individualism changed trust and communication way between people. Personal acquiring profit pattern overrides the risk prevention. And lack of trust made belonging feelings disappear and interpersonal indifference lost.,hampered good relationship and changed their mind of group spirit, which caused opposites between personal poverty and social prosperity. In the past decades, annual income of middle-income families in American decreased by 4%,when total amount of wealth in society was increased, which means more and more wealth concentrated in the few people. Secondly, the diversified development trends was hindered. New liberalism in global stage intended to reconstruct the new world order, which did not satisfy with dependence from developing countries. Lastly, double standard buried the seeds of crisis. New liberalism advercates liberalism in market and conservatism in political in essence. That means the developed countries solve problems in their own way disregards of others, which equals to using a bigger bubble to replace the previous bubble. In the view of new liberalism, its decline is inevitable.The other way is the welfare state system. Direct cause of European sovereign debt crisis is that the government could not afford its debt. But the real reason is that the countries continuous economic growth declined, which can’t support the welfare state system. In order to maintain its position and high level of welfare, the government had to borrow much more money. When the distance between economy growth and high level growth of welfare became bigger, the crisis happened. There are many new trends of welfare reform after the crisis. Firstly, reshape the value:put social justice in core. Secondly, change singe national independence reform to multinational negotiation. Thirdly, seek a dynamic balance in tortuous advance. Forth, use the experiences of the Swedish welfare state system reform. Although the welfare system was widely criticized, such as inefficient, promoting laziness, blocking the development of country, it not only the main way to realize redistribution, but also played an important role in obtaining support in party vote. In the deeper sense, the welfare system ease the class contradiction, improve the process of investment and consumption and create a stable social enviroment to development. "Although capitalism can’t coexit with the welfare state. The capitalism can’t lack of welfare system." In order to solve the dilemma of welfare system, many scholars made many meanful explorations. Among those, Offe’s research based on Marx’s theory, referred to "the second level crisis". Through the way of comparison between "sporadic crisis" and "process crisis", he suggested new views of welfare state crisis. From the financial resources, administrative rationality and legitimacy aspects, he verified the welfare state system couldn’t sustained.From the practices of dealing with economic crisis of our country, with the deeping influence of globalization, the real economy experienced a considerable impact. In dealing with the crisis, the Chinese government put 4000 billion to stimulate domestic demand and promote structural tax reform in order to increase investment of enterprise and individual.But from the construction of economic increase factors,export, investment, and consumption appeared unbalance. The proportion of investment and export increased while domestic consumption is decreased, which caused the Gini’s rising. Although more investment could quickly promote GDP, it couldn’t sustain. Comparing our country’s 4 trillion investment with the American’s stimulus plan, we can see:firstly, in the structure of expenditures, China’s investment on fixed assets ratios was 38%, far higher than 24%in American. The stimulus plan of America focused more on inner growth factors, such as through tax cutting the government moblize enterprises to participate in market and arrange producting according to the laws of market. Secondly, from the sustainable use of capital, America investment on education, training and scientific research accounted for 21%, where the plan in China accounted only 4% in this field. The United States paid great attention on important power source of economic growth, but our country focused more on short-term effect of investment. Thirdly,the investment management of environment improving equalled to America. China experienced development path of high pollution, low return and high consumption. But comparing with the United States, it was quite less than it should be.Considering our government’s measures, it exposed many problems. On the one hand, the relationship between government and market was not suitable. The government use the resources and administrative power force to the market. In the market economy the government act not only as a "referee", but also as an "athletes", weakening the basic status of the market for resource allocation, distorting the allocation of resources. On the other hand the government didn’t set up welfare system covered all fields which caused lack of enquiring. That’s why the policies aimed to stimulate economic couldn’t achieve the original subject.As for our country, the crisis happened because of lack of liberality and welfare system. Lack of liberality caused market competition, innovation stimulation and recourse using uncompletely,. Lack of welfare system, the public should pay for their own education, medical fees, etc. It’s not strange that more and more money which should be used in market are kept in deposit. That’s why a lot of policy were carried out to stimulate economy, but the effort didn’t achieve the original object. Therefore, we must recognize the special situation, give more liberality to the market and set up suitable welfare system to promote economical enviroment stable, orderly and healthy.
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