The objective of this study is to determine how the global crisis has affected welfare states. I inquired about how state intervention altered in Nordic welfare states in reaction to the global financial crisis of 2008, as well as the function of welfare components. To respond to the research topic, I used both qualitative and quantitative methodologies. I utilized the data for developed economies of the OECD, beginning with cluster analysis to confirm and compare results; thereafter, I created two regression models reporting Pooled OLS and Fixed Effects models to expand the investigation. A welfare state is a multifaceted phenomenon, and it necessitates a range of techniques and methodologies. My study is based on the institutional analysis paradigm because it is a powerful tool for connecting disparate features to comprehend multifaceted, complicated concepts such as welfare states. To conduct this research, it is necessary to understand the challenges that welfare states faced and how they dealt with them, as well as how welfare states might respond if the global economy faces a similar situation in the future and how lessons learned in the past can be applied and more efficient policies implemented to reduce risks. A detailed and theoretically grounded investigation can also help to close a gap in the literature.