I'm not talking about people not participating because they're lazy, I'm talking about people not participating because there is nothing to do.
So long as there is at least one other person who doesn't have everything they want, there's something to do. I can live with the possibility that one person might not get everything they want.
So by that definition, circle jerking will feed everyone.
I know you said they can earn the $1 off someone else and use that to buy the food from the controllers of food, but there's only so much the controllers of food needs, and that's the problem. Once he has all the $ in circulation, where will the more dollars come from without an army backed inflation currency?
So the farmer just needs money? He has no maintenance costs? He doesn't like to watch movies? He's just going to sell his food, and put all the money gained thereby into the bank, where it sits, doing nothing, right? Yeah, no, It doesn't work that way. He has costs, too, and desires. The money he gets from selling his food will go to pay for those needs, expenses, and desires. That puts the money back out into the market.