Yes according to the textbooks, production should go down if you remove desperation as a motivator to work, in the real world however almost every data point co

Yes according to the textbooks, production should go down if you remove desperation as a motivator to work, in the real world however almost every data point collected shows the opposite effect on the overall productivity, ie societies with extensive welfare schemes outproduce those who don't allow people an exit from the rat-race. Nobody have gone full UBI yet but the economies that have gone the closest to actually implementing UBI(say Scandinavia) is among the most productive and healthy economies around. What does tend to happen when a system is put in place to provide support for those who refuses to accept any employment, is that the ability for wealth hoarders to use their hoards as a lever go gain more wealth and power declines as the bargaining power gets more even. One of the benefits of universal(non-means-tested) welfare project is that the graft and administration overhead of those systems tend to be much lower then "charity" based welfare projects and UBI is the ultimate in low overhead universal welfare. And when you look at the structure of most post-industrial economies admin overhead and graft is more then 50% of the economy, i.e. it's by no means a given that we cannot keep up production of goods and services with even 60% of the population of UBI.