Great post, I hands down agree with everything here.
Danny, there may be much less incentive to be poor under Tynan's scheme. A lot of people are poor simply because they know that the state will support them... So they become apathetic about taking control of their finances. Under this scheme, their family would need to support them if they're too poor to support themselves, leading to them working harder to get out of their rut, rather than being complacent. Of course, if there was a fast switch to Tynan's suggested scheme, there would be a lot of problems, however a gradual shift and things may very well work out better for everybody.
The gun laws thing is a bit tricky, though. I kinda disagree.