You guys make a lot of good points. I think it helpful to put your ideas in a broader historical context:

What you are seeing is very common in (current and former) socialist countries. In the USSR there was a popular comment on the meaninglessness of work: “They pretend to pay us, and we pretend to work”. The idea of a guaranteed income that is now making the rounds (especially among young people who haven't learned much of the history of socialism) is one more step in the transformation of the US. I visited China before economic liberalization took off, and I saw the same lackadaisacal work ethic.

Participation trophies and guaranteed passing grades in school send a signal that your work, no matter how badly it is done, ultimately doesn't matter. Nobody cares how much effort you put into doing a thorough job, so why bother? Everybody graduates and receives a meaningless piece of paper called a diploma. As a college teacher, I have seen this attitude many times: if I insist that students show some real effort, they complain to the administration this teacher is “unfair!” This corrosive attitude is carried over into the workplace. A relevant discussion: https://www.quora.com/How-did-communism-affect-the-citizens-of-the-USSR  

I think the only meaningful way to correct this situation is to pull our kids out of government schools and teach them ourselves. Our next generation is more important than the extra cash we can earn (used to buy status symbols and expensive toys) if both parents work. This is a cultural war that we cannot afford to lose!