An alternative to using expenditure policies, tax side policies can also be used to reach a balanced economy. The tax side policies have an advantage of absorbing a lot less of the national income than the expenditure side policies.
On social and welfare issues, according to the book, government policies are also not very helpful. When providing public housing to the poor, the government assumes that families being helped need housing more than they need other things. The government does not give these people the right to choose. Public housing has not at all increased housing for people, since the number of buildings destroyed surpassed the new ones built. The minimum wage law is also ineffective. Its purpose was to reduce poverty by setting a minimum wage but since the minimum wage was higher than the wage people were getting, it caused more to become unemployed. Farm Price Supports also did not accomplish the intended purpose of helping farmers. Not only has Farm Price Support not able to alleviated the situation of farmers, but it has also hindered foreign policy, causing some adverse effects on other countries. Old age and survivor's insurance is also an example of government inefficiency. The g!.
overnment has no right to give the tax collected from the young to subsidize the old without the considering of the economic situation of the old. .
Friedman believes that the denationalization of schools would be better than state-controlled schooling. Firstly, denationalizing would give parents more freedom on where to send their kids. Secondly, denationalizing would promote more competition among the schools, which might improve the quality of schools. Thirdly, denationalization of schools would foster diversity because the schools children go to are not limited by where they live.
According to Friedman the in the free market society there is least discrimination therefore government should not intervene.
