Case in point: USA has a very well-developed bankruptcy system. Losing a business frequently means your business debts are absolved and you can start anew. One may think that such a system will encourage people to throw money at bad decisions: however, a bigger effect is that people are encouraged to cut the loss at a reasonable point and start a new business, because you can take calculated risks.
There are (or used to be) arcane economic systems based upon the reverse principle: if your business fails your life is ruined, so you have every incentive to stick to it until the bitter end, using up every resource, including your personal money, your family money, and your relatives' money. (South Korea used to be like that.) And guess what? It didn't bring more successful businesses, just more suffering.
They're not all positive though, they are incentivizing a part of the population to not contribute. I live around such people, and I have no doubt that they'd contribute if the alternative was going hungry and sleeping outside. But since the alternative is a 70sqm flat, a tv, xbox and smartphone, utilities paid for and food in the kitchen, they don't see a reason to contribute - it would just mean spending time doing things they don't like for more money. But as they already have their needs and most of their desires covered, that's not a good offer to them. They're perpetually relying on the safety net, and it tends to become intergenerational.
If you want to install a safety net, it's wise to address that issue.
Not all will, obviously. Some actually need the safety net (e.g. disabled people), others fall into it and then get up again. It's the ones who don't want to get up again that are the issue.
I'd rather have them return to contributing than pretending that, if we didn't have people who are lazy, we'd invent them.
Those carers are often entirely dependent on safety nets.
That is far from lazy! It's an exhausting thing to do.
Heck, for some even getting out to the shops is difficult, as how do you go out if you need to stay with your cared for person all the time.
Maybe you'd consider it solved if you count the benefits on which so many carers rely; certainly not without them.
Even then, I find it striking that benefits for carers where I live are lower than benefits for an unemployed person. As though a carer needs less to live on.
They also incentivize problematic behavior. When there's no chance in hell that you won't get the money, you have little incentive to change your ways to become a productive member of society. Moral hazards are a thing.