Ooohhhh so now we come to it. Right-o.
So MOST people will just love your system and be oh so happy to work but 20 hours a week to support it. But then, you know, who really wants to WORK? And then Betty's snotty boss asked her to mop when it was ending time. So Betty figures, screw it. What does it matter anyway? She doesn't get any more or any less if she works hard or not.
So the next shift, she goes in but fluffs off most of the day. But she does share her thoughts with her coworkers, who agree (those who haven't figured it out yet). Why are they all working so hard? They don't get promoted. They don't get increased pay. Next time the boss asks them to do something, they say, "yeah, when I get around to it". Just enough to placate, never enough to get the work really done.
Sweetheart, you seem smart enough to string a lot of works together but exceedingly naïve. Your nation would be a dystopia in less than 10 years. It would slouch toward apathy and then worse, as you would have to roll out incentives/punishments that would make it look just like a meritocracy. That is: capitalism, but I guess without the money.
You just cannot outrun human nature.