There has been a debate whether the contemporary Western countries are capitalist class states, or are above classes – representing the common interests of the capitalists and the workers. On the basis of a functional analysis, the study comes to the conclusion that the governments simultaneously represent capitalist accumulation, charity, social interests as well as political interests serving social peace and their own administrative interests. As a result of this various functions are mixed in the price-, income-, and employment policy: their origin and development become confused.