The current way we coerce (by threatening starvation and homelessness) is not the only way to make people do things. I agree that free everything forever with sprinkles is probably not going to work or allow us to maintain our current quality of life (I too like pop-tarts medicine, and computers). It's not a binary. There are options in between that can be used to motivate people to do even unpleasant things.
I think we coerce way to much and I think a lot of coercion that we do benefits only a few people and not the many.