As I was sorting through some old boxes of books I came across my copy of Wilhelm Ropke’s Economics of the Free Society. In flipping through the pages I was surprised to discover a great deal of underlining and some marginal notes that I must have made several years ago when I was still enraptured by libertarianism lite. This paragraph, which I had bracketed, jumped out at me (pg. 210):
As a last resort, there is available the extra-economic correction of the distribution of income. This consists in the state awaiting the results of the economic distribution of income as they are crystallized in the market processes, and then correcting these results by taxing the rich and spending for the poor. As a matter of fact, a considerable portion of the public finances is devoted to such rectification, supplemented by the efforts of private welfare groups. Obviously, there are certain limits here which may not be overstepped if paralyzing effects on the process of production are to be avoided. It is, of course, clear that the state can go much further in employing such corrective measures the smaller are its expenditures for other purposes.