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2) You require that those who apply for social assistance, work for the benefit if they are able to work.
3) To find out if they are able to work, the social assistance administration does a work test.
So people are hired at a lot of public institutions (e.g. Additionally these jobs improved the unemployment statistics at a low cost for the government, as people who are working in these jobs count as employed although most of these jobs are only part time jobs.
As a result a lot of our homeless are depressed people who stopped responding to social security demands because that’s what caused their depression.
(Links are to German Wikipedia, maybe Google translate helps)I agree that it doesn’t work as expected in Germany, but I think it it important to point out that not everyone is allowed is to hire workers for 1€.
The work has to be neutral to the competition and in the public interest.
Effects of the system: When the social assistance administration does the work test, it discovers that many long-term social assistance claimants are actually disabled (which was never found out before we introduced the activation requirement plus work test).
Hence they qualify for a disability pension instead (somewhat similar to US Special Supplementary Income).