>how does the money affect competition, both for goods/services and labor?
We have the entire 20th century, when many countries tried exactly that. Production is decreasing, labor participation decreasing, good availability decreasing. Mass famine, millions of deaths from starvation. Governments have to decree force labor to overcome famine and totalitarian oppression to avoid revolutions and protect the progressive achievements of general welfare. Last part centralizes authority even more and gives the government tools to remain in power no matter what.
>Or we can raise the payroll taxes to cover the payouts.
This is exactly where the spiral of death begins. Hieger taxation (when there is welfare) - less work incentives - fewer workers - less goods availability - you need bigger welfare share, so even hieger taxes. And so on until people have literally nothing to eat. Not once or twice, always.
We have the entire 20th century, when many countries tried exactly that. Production is decreasing, labor participation decreasing, good availability decreasing. Mass famine, millions of deaths from starvation. Governments have to decree force labor to overcome famine and totalitarian oppression to avoid revolutions and protect the progressive achievements of general welfare. Last part centralizes authority even more and gives the government tools to remain in power no matter what.
>Or we can raise the payroll taxes to cover the payouts.
This is exactly where the spiral of death begins. Hieger taxation (when there is welfare) - less work incentives - fewer workers - less goods availability - you need bigger welfare share, so even hieger taxes. And so on until people have literally nothing to eat. Not once or twice, always.