Strange logic v. No logic.
Just who exactly would be inclined to produce anything in such a system?
You?
You?
Well, sure. Actually people would have more incentive than under welfare system, where working and earning reduces what you get. If people worked and made money for extra stuff beyond their bare living expenses they wouldn't be punished for it. A lot of people who are working now could get by working 20 or 30 hours a week, but work 40 or more because they want to live better and save money.