I can tell you what kind of incentives such a system promotes: different ones!
In particularly a welfare system gives incentives to people who want to create something out of intrinsic motivation, not because of financial motivation. Many of the things the most profitable companies use are actually but on tools and mathematics that were created without any financial freedom.
So I would rather reserve the word "toxic" rather for the current system consisting of purely financial motivation to hoard money that your are so vigorously defending.
I can tell you what kind of incentives such a system promotes: different ones!
In particularly a welfare system gives incentives to people who want to create something out of intrinsic motivation, not because of financial motivation. Many of the things the most profitable companies use are actually but on tools and mathematics that were created without any financial freedom.
So I would rather reserve the word "toxic" rather for the current system consisting of purely financial motivation to hoard money that your are so vigorously defending.