If you've never seen this level of perverse incentive, you have been lucky. The creation of and subsequent exploitation of them aren't new. For pre computer examples: https://freakonomics.com/podcast/the-cobra-effect-2/
Edit: I think it may have been from Capers Jones's _Programming Productivity_[1]. Published in 1986, based on research covering the prior 30 years(!) or so. We have known that bad incentives specifically distort the performance of programming teams for a long time.
1 - https://archive.org/details/programmingprodu0000jone/page/n1...
sounds like they had some cross cutting concerns
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The king had a side biz
Healthcare and infrastructure was then build too, but the relation was already scarred and well, it's not easy to reset everything.