"In particular, you have applied a type of thinking that some people have today to a situation that would necessarily require them to have a different type of thinking."
… Which would require everyone to think the same way, which doesn't happen in reality, which is why I've deliberately ignored the absolute extreme. The OP was referring at worst to a utopia, at best (and most likely) to a "near utopia" using imperfect language to communicate such, while I was bringing that utopia down to earth by showing that it only takes 0.25% of the population taking advantage of kindness in order for the problem to become worse than it already is. We already know that all people do NOT think exactly the same, and so arguing with absolutes is pointless.
"This point is simply irrelevant unless you mean to suggest that the increase is due to people trying to take advantage of the lucrative beggar market rather than working."
That is precisely what I suggest. Any time a power efficiency is discovered, people move in to take advantage of it. This has been happening since the dawn of life. In this case, it is an efficiency for acquiring money. The more people give to beggars, the easier it will be to live off the proceeds of begging, the more people will consider it a better use of their time compared to what they're doing now. Quite obviously, efficiency won't be the only factor in the decision (other factors, such as pride, come into play as well), but each factor will be weighted differently by different people. It is often said, every man has his price. And though that statement is technically absolute, I do not believe it absolutely, nor is it meant to be taken that way.