Its bad in both cases.

Lets take the extreme, lets assume that Norway is an island and has a $50t wealth for 5m people. $10m each. Assume 2% return on that wealth, $200k a year income. Great, everyone is happy.

Who empties the bins? Or repairs the road?

You end up importing those people from elsewhere, just like the wealthy parasites do. Oil countries like Qatar are like this. It's not a good thing.

A centi-millionaire, in Qatar, Norway or New York, can live for free without doing any work, and will see their wealth grow about $10m a year off the backs of other people, people who won't earn anywhere near $10m in a lifetime.

Other people who aren't as wealthy do the work.

Imagine you are on an island with 10 billionaire CEOs and 10 people who have no net worth but know how to fish, cook, build etc.

It doesn't matter how rich the billionaires are, their wealth is worthless, the person with the skills is whats valuable.

The real numbers are $340,000 per person in the fund, which at a safe withdrawal rate would be $10-13,000 per year if turned into an income stream. So not exactly fuck you money, and there's a very long way to go before they have problems with bin collection.