Feudalism is not a terrible analogy. It's just not complete. It's still stick, but now we get carrot too. We still get the stick as in - don't pay your taxes and you go to jail or can't pay rent - you're out on the street. It's not beheading, but it's still force backed up by promise of violence.

But now we also get the carrot - the freedom to consume what you can afford to.