I read an adjective describing a noun, not a combined two word, self-defined phrase?

Perverse: inexplicably irrational: contrary to what is regarded as normal or reasonable, often for reasons that seem unaccountable or self-defeating

Incentive: something that encourages somebody to action: something that encourages or motivates somebody to do something.

Please, all knowledgeable one, tell me where you learned of this definition of "perverse incentive" (one word?).

I can see you're defensive about this subject, but a simple google search of the term comes up with a wikipedia article explaining what is commonly meant by "perverse incentive".

I agree that BIG creates incentives... that is the point of all social policy in the history of ever. But the contrast here is that current policy can make positive actions (working, investing, personal development) a net loss to a family or individual who attempts them. THAT is the definition of a perverse incentive.

And my point is that BIG policy makes it so that negative actions (not working _hard_, not investing, no personal development beyond what is required) are not a net loss to the family or individual. Thus, it promotes doing the bare minimum to get by, especially when the result is a very comfy, stress free lifestyle.

You might want to Google the term yourself. According to Wikipedia, "A perverse incentive is an incentive that has an unintended and undesirable result which is contrary to the interests of the incentive makers". That is exactly westicle's usage here, unless you are implying that the outcomes he described were actually intended.