Such a great analysis!

Yes! People need some work, some struggle, some sense of usefulness and social interactions.

If you simply give them money - you are ruining them. You are degrading them and make them miserable.

Curiosity fact: after WWII, we had something we called "The Yough Work Action". Young people, boys and girls would participate in large (massive) scale public works (building the roads, factories, railways). They were paid nothing. Just shelter, food and working clothes. But thousands of them participated. Because it was fun (free courses, theatres, music, they could get driving licence...), there was a purpose and they considered that everything belongs to people. Of course they were buinding the roads, because those were their roads.