Imagine if the Pierre administration had used such a method to decrease opposition to reducing the basic living stipend. Consider how Ransom could have yelled about the nasty Legislaturists taxing the poor at a 100% rate and hiding it! Think how they could have trumpeted that any dolists who moved to improve the economy by working should be rewarded for it instead of penalized.
Here is the question: Why is this method not used, either in fiction or reality

The families benefit by increasing their income. The state benefits by cutting expenses. The economy benefits by more production and/or distribution. Who doesn't benefit, that this was cut off (in reality) instead of expanded
