the disincentive to work is very real, it is not a bogeyman of the free market advocates.  that said, it's also a common mistake of free marketers to think of a work disincentive as inherently bad.  people would do well to remember that economic statements in themselves are value free: If you do X, Y will happen.  it says nothing about whether Y is good or bad.  That is up to the people Y affects to decide for themselves.