They must constantly show real proof they are looking for work and even with part-time jobs their assistance is immediately scaled back.
This is simply false. The vast majority of the poor are not looking for work, nor are they working. Nevertheless, they consume an average of $30k/year.
Did you even bother to read my link?
You aren't going to make assistance less attractive than a minimum wage job, it's impossible.
It's hardly impossible, but I agree that a lack of dignity is probably insufficient to push more than a few people over the threshold. That doesn't mean we should skew the incentives even more toward couch surfing and away from work than we already do.