Oh, misunderstood. You still need to think about what it is you wish to optimise for. I am not a regulation hater but naive regulations tend to cause rather than mitigate pathological economic incentives. It is very very hard to get these kinds of things right.

Another thing, one related to your original post: it is, of course, good imho to have a working hand-out system so that you don't starve when you are out of a job, or are forced to have to work for really shitty conditions.

This causes another problem, however. It is very easy to get dependant on these hand-outs because the difference in pay between the jobs you are able to do and the size of the hand-out can be very small. Even negative. We have (had) this problem in Sweden for a long time. And it is a problem because when people are less poor, then things cost more money because of it. Cynical, I know. Economics is very very hard.