As a result of such compulsion, we shall pay more than is inherently necessary for what we get and get less than our services are worth. The distribution of income which results from complete freedom would be less than ideal, judging by the standards to which most of us hold. Long ago government came to use funds collected in taxes to meet some needs of persons whose income from production seemed inadequate. Transfer Payments Modify Income Distribution Modern society goes farther. The results differ from those of the free market.
Taxes also redistribute income and wealth.
The general results may, or may not, suit us better than those from freedom. Nevertheless, in three important respects the consequences of freedom have no small economic merit. The kinds of services desired are most likely to be forthcoming if demanders and suppliers are free to make the best deals possible. Efficiency in utilization will be encouraged. Nor will a man be denied work because his productivity does not come up to the lowest level of wage rate permitted by law, union-management agreement, or custom.