Otherwise we get welfare traps, ghettoisation or just poor quality (like buses in places where only the poor use em). It doesn't mean everyone has to use it, just that they can. This is common sense in services like health or education, where we're used to it.
https://en.wikipedia.org/wiki/Welfare_state#Three_worlds_of_...
However, it doesn't go far enough because the tax rate doesn't take benefits into account, so even though you're getting >$0.80 of every dollar earned, after adjusting for benefits it may instead be $0.20 or even negative. The Earned Income Tax Credit (EITC) is an especially large contributor to this situation [1].
To avoid a trap, marginal income after taxes and benefits should start high and fall monotonically. It should probably also be concave up (the amount of income to bump you into the next 'adjusted tax' bracket gets bigger and bigger).
[1] https://www.urban.org/sites/default/files/alfresco/publicati... (page 767, Figure 2)
Mulling it over I think uniform single use zoning/construction is 'bad'. I saw presentation by a guys showing various housing. One of them was a very nice 1920's era apartment building in Redwood city. One of his points was it'd be totally illegal to build something like that today.
At least in dense cities, public housing can be mixed into free market housing.
> ... it also set strict requirements for younger people who lived there: if your income exceeded a certain threshold, you would be evicted. If you refused, you were charged rent – at potentially up to twice the market rate, depending on your income.
The goal was to make public housing a safety net for elderly, low-income and socially vulnerable people. The effect, however, has been to make social housing off-limits for most people: eligibility fell from 80% of households in 1951 to 25% after 1996.
And it has turned public housing into a kind of ghetto for poor and elderly people who rely on pensions and can’t afford private rents.
In Canada it is often controversial when upper middle class people are found to be living in affordable coops and anti-poverty activists, in an understandable effort to create as much low income housing as possible, often call for wholly low income housing projects instead of having buildings with mixed incomes. This article suggests at the flawed outcome from overly means testing benefits.