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What I think the system(s) should do at this point is actually 'arrest' the person, take them to someplace that evaluates them for why this situation occurred and then addresses the malfunction.

Maybe it's a legitimate case of hardship; the individual is doing the best the can, but society and circumstances have simply doomed them to failure. Forgiveness (of various kinds) and moving forward are recommended.

Maybe they are in an area where the cost of living is too high or they can't find jobs to supplement the basic income and allow them to afford additional expenses. Find them a job and/or help them move to an area that society needs them.

Maybe they cannot manage their own life and circumstances: convert BI to paying for semi-managed lifestyle (E.G. a dorm and/or community food kitchen in their housing block).

You might have noticed a common theme here, instead of handling an exception with a punishment you handle it with identifying the actual cause and attempting to address it. Any 'punishment' as a result is a loss of freedom (in exchange for society helping you with your problems).




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