It depends on the country you're in, for example in France we have a lot of different financial helps from government, all these helps could be deleted and merge into a UBI.
Yes it doesn't solve the problem of engagement ...
I'm not sure it will create more contradictions, because it can help fixing other problem like unemployment, people will work less but also more people will work
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capitalism does need unemployment to function
Yes that is fully true, that's why the system need to be switched to an other one. A better one
which can only happen one way, revolution.