236 Economic Theory: An Introductionof tax avoidance than paying one’s fair share. To attempt to take
from some to redistribute for others is to violate essential
morality.
Despite his opposition to most government welfare programs,
Friedman does support some governmental efforts to help the
poor. First, programs to alleviate poverty should be directed
towards the poor, not specific groups. Second, the program
should not distort the operation of the free market, as do price
supports, minimum wage laws, and the like. His solution is the
negative income tax, which would provide cash to a person
according to a system which would encourage work. For ex
ample, if a person were not working, he would receive a
minimum payment; if he earned a portion of that minimum, he
would continue to get a percentage of the minimum, not a full
percentage but enough to encourage even more work. If the base
figure were $600, a non worker would get $300, a person earning
$300 would get $150, while a person earning $400 would get
$100, and so on until the minimum was met, at which point, at
$100 above the $600 amount the individual would begin to pay
taxes. Thus, the incentive to work is incorporated into the
payment, since it is never more profitable not to work than it is
to work. Also, the government-provided funds come with no
strings, the recipient determines how the money is to be spent,
and the market is not distorted.
Milton Friedman is a modern-day Adam Smith, who has
analyzed economics, and incorporated into his theory the com
plexities of modem society, while maintaining the moral premise
of individual freedom. His contributions in the area of monetary
policy, the negative income tax, and the voucher system are
being vigorously debated at this moment. His views on unions,
the graduated progressive income tax, right-to-work laws, and
the relationship of economic and political freedom have become
accepted theory in many circles.