I remember asking the same question in economics class in the 1980s. If someone is below the poverty line and gets Medicaid, housing subsidies, food stamps, direct cash welfare, and a dozen other welfare programs is she still poor. Back then the answer was "only the direct cash payments count in the calculation of poverty". I pointed out that using those counting methods you would live better being "poor" than in the self sufficient lower middle class and that poverty programs would likely drive up the poverty rate as counted rather than reduce it.
Give me a free house in the suburbs, a new car, cable TV, a free phone and internet, free food including restaurants and enough cash to enjoy myself then I might be willing to be "poor" too.
Feeding people is a like lot feeding bears the more you give them the more they want.
Then when you stop they tend to get mad and angry.
My solution is a 10 percent reduction every year.
Then in 10 years there is no more.
There well be people who still after 10 years well be holding out for more.
But OH well.