Systems Exploited by Bad Actors

The system rewards people who can exploit it.

What system isn't capable of rewarding bad actors for a long time?

Systems not taking into account that humans can behave in a corrupt and greedy way are just bad systems. We can totally blame those systems.

There is no system that can't be co-opted and ruined by bad people.

The parent has the flaw that a lot of people do. They don’t seem to understand that not everyone is a mostly decent person and that there exist bad actors in any population. You can’t get away from this in any society, for example what percentage are psychopaths? That means if you create systems (like this) that eventually bad actors can exploit for themselves, they will, and they do. It’s not a conspiracy. It doesn’t happen right away. But slowly it’ll happen that the few percent can use these

More likely:System is funded by X.People evade X.System gets progressively shittier.

When you've got a few bad actors abusing the system, all pay for it. There's a reason we can't have nice things.

This all sounds like there is an inherent problem in the system itself, as it incentivises bad behaviours.

Every system is corrupted by those willing to leverage the most from it.

Incidental bad actors don't invalidate the entire approach of safeguarding people's livelihoods. The 3 people you describe would likely try to exploit any system unfairly. The perfect is the enemy of the good here as in most other places.