This is a sort of complete miunderstanding of how your world works. Utterly.

People work for incentives. People on HN work on their startups - why?

They could get a SW job and leave the stress behind, why do they have to struggle?

Some people will take the basics and be happy - thats their call. MANY others will do what it takes to get paid because that is what they want.

So if you aren't getting enough fruit pickers, well pay more. If apparently your going rate isn't high enough, well then those strawberries are perhaps not economically viable in the first place, since no one in your economy wants to do that work.

Obviously its a lot more complex, but the essence of economics is always - people act according to incentives.

Because prices would be so high that you would be unable to pay rent or eat on your monthly “allowance”. You could keep raising the allowance every month and things would soon spiral out of control

This assumes that large landowners and food conglomerates are 100% rentiers.

That the money they make is based on the amount they can extract, and not on the value they provide. You're describing a system which is not democratic capitalism, it is serfdom.

If that were the case, why would we continue to allow that?