Even if prices rose with everyone guaranteed resources, why would anyone get off their asses to shovel shit when they can sit at home and get paid basically the same?
People work for incentives. People on HN work on their startups - why?
They could get a SW job and leave the stress behind, why do they have to struggle?
Some people will take the basics and be happy - thats their call. MANY others will do what it takes to get paid because that is what they want.
So if you aren't getting enough fruit pickers, well pay more. If apparently your going rate isn't high enough, well then those strawberries are perhaps not economically viable in the first place, since no one in your economy wants to do that work.
Obviously its a lot more complex, but the essence of economics is always - people act according to incentives.
That the money they make is based on the amount they can extract, and not on the value they provide. You're describing a system which is not democratic capitalism, it is serfdom.
If that were the case, why would we continue to allow that?