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There's a shitty version of this already, which is welfare paid out per child. This has obvious virtues, but my friend is a section 8 landlord and has many stories over the years of this benefit being exploited as a kind of "career" which I think is not holding with the spirit of the thing.
Not a thing you can say in polite company. The prevalence of it I don't know, though, so maybe it's rare in absolute terms.
Anyway, interesting comparison to Hanson's scheme.