> Given that this is not the scenario now, countries are forced to tax the currently economically productive people to pay for some of these things for those not currently participating in the economy.
It's at least as valid to say that capitalism is incorrect in valuing people only in relation to the value of their labor. We have massive social and financial structures to subsidize students, because we recognize that activity has a great deal of future value to individuals, nations, and the world at large. We provide a great deal of support to mothers, and the elderly, because societies are more than just economic engines.
> There is no country in the world that provides all of these things for free to all citizens because there would be no incentive for anyone to do the work to support all of the basic needs.
Contradicted by studies. People work because they want to, and because they want more than a basic existence. You would also need to show that it's less expensive to have a bunch of homeless and/or sick people, which is not really possible in a democratic society. Not paying for things that are necessary for your fellow citizens to survive usually ends up being the most expensive way possible to pay for things.
I think that you should rethink a great deal of your sociopolitical philosophy.