When I was a teenager, just before Medicare was implemented, there were all these local news reports about local elderly people starving, eating cat food (although now fast food is cheaper than cat food), living in the seedy downtown tenements that would occasionally catch on fire, etc. All the charitable activity in the country didn't make a dent in the plight of the elderly back then. Medicare was a good addition to the social safety net and has helped elderly people have a humane subsistence. One of the reasons I was able to be retired now is since I witnessed all those pre-medicare goings on, I vowed to never be broke when I was old. Fear is a great motivator.
Also, the social safety nets were put in place to prevent civil unrest, not for morality. And the plan worked. IMO the Dickensian plan you espouse will lead to civil unrest. Because children, the disabled and older people are defenseless. People see that and expect better from their society. A revolt from the masses is already being anticipated by the 1%. Which is totally unnecessary if they just kept the policies the prevented civil unrest since WW2.
For example: " Silicon Valley’s elite are preparing for Armageddon by buying up property in New Zealand. Seven tech billionaires have so far made apocalyptic investments in the commonwealth country in case they need to flee California. Fear of nuclear war, violent revolution and pandemics have seen San Francisco’s finest start commissioning multimillion-dollar underground bunkers in New Zealand."
https://nypost.com/2018/09/06/apocalypse-fearing-billionaires-are-shipping-bunkers-to-new-zealand/