I think the difference between me and the opposing commenters is that I have actually lived in the ugly communities, and they haven't.
I used to act as a local law and insurance adviser and do taxes for people who didn't know how to do this kind of thing for themselves. Please don't call me a community organizer heh. Anyway, the racism and hatred you find in such places must be experienced to be believed. These people need to work - if only to force exposure to other people and to understand that we are all human and must live within some kind of rules to avoid bloodshed. Otherwise, the scenario I painted above is reality - and will become more prevalent when work is optional.
I live in a nicer place now, but I still have friends from those communities and I still remember how things were. They tell me nothing that makes me believe things have changed.