As I've said before, Norway has a de facto system that works like this already. Anyone that's deemed unfit to get a well-paying job gets a fixed monthly payment from the government.

What if you want more money than you can get through this system? Then you have to do work that pays. Money and status works relative to your peers, so there's an incentive to earn more if your peers are richer than you. I don't see that this is a problem if the society is wealthy enough.