We could differentiate between providing basic life support (housing + food + medicine) and paying for your hobbies. I am doubtful that the stick is the only op

We could differentiate between providing basic life support (housing + food + medicine) and paying for your hobbies. I am doubtful that the stick is the only option (destitution) and not the carrot ( having an iPhone Pro Max Super Wazoo 300, eating at restaurants). In your example, books I'll concede you could do on the cheap, but woodworking not so much. As a hobbyist woodworker myself, I know how much all the basic tools cost, and then the wood on top of that (+ a large margin for how frequently I botch a good plank). And it's not like we need to provide a 3,000 sqft penthouse to those who are not contributing to society; something that keeps people safe from the elements but is otherwise pretty bland would be okay. I think it could be sufficiently bland that folks would be motivated to work to upgrade.