Many years ago McKenzie set out to expose the hidden assumptions underlying
the orthodox case for the collectivization of charity as put forward by Fr
iedman. In doing so he argued that collectivization may reduce the degree o
f transfers and this will necessarily make the poor worse off. I demonstrat
e that McKenzie's analysis contains hidden assumptions of its own and that
even if there is a reduction in the level of transfers it does not necessar
ily follow that this will result in a Pareto inferior redistribution.