That's why all these programs that have a cut-off are bad. We need universal Basic Income. We need socialized access to certain things: minimal food, water, shelter. These things cost less than it does to deal with a world that lacks them.
If we could have public housing regardless of income, people with higher income will choose to forgo it to get something better. The problems come with the perverse incentives and bureaucracy connected with proof of status and arbitrary cut-off points.
I would rather say, "That's a bad thing about all these programs that have a cut-off." I don't think it's clearly such a bad thing as to make every such program net out negative.
Absolutely. The quality of having a cut off is negative and actually expensive as it creates bureaucracy. But it certainly doesn't negate the positive value of these programs today.
If we could have public housing regardless of income, people with higher income will choose to forgo it to get something better. The problems come with the perverse incentives and bureaucracy connected with proof of status and arbitrary cut-off points.