It entails being out of touch with reality, where your optimism isn't grounded in comparison to the situation you're in.
For example, imagine climbing Mount Everest and you underestimate the weather, which are underestimating obstacles and risks.
The conservative welfare state, also known as the Christian welfare state, highlights a government regime with the least centralized system of governing. The conservative welfare state believes that decision-making should be directed by local levels rather than a centralized form of governing.