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There already is a system which does that: http://www.humanservices.gov.au/customer/enablers/centrelink/income-management/basicscard It's been tested in certain areas and is being rolled out nationwide last time I checked.

Hey guys, lets use government funds to build a bunch of tenements concentrating the unemployed/lower socio groups, then get them to work for low wages. Whats the worse that can happen! The problem is inter-generational welfare cycles. To break this you need to target the culture...