What is wrong with "handouts?"
Humans have a natural drive to be self sufficient, and it is unpleasant to rely upon the charity of others. We wish to be masters of our fate, not slaves.
Further, it is dumb to structure a society in a way that depends on significant numbers of its members routinely going against their own self interest.
A handout is when someone gives you something you are not entitled to of their own free will. They can stop giving it to you at any time. If you are reliant on handouts, you are at their mercy.
That's the difference. With an insurance contract you are entitled to a payout when the conditions are met because the insurance company agreed to that as part of the contract. The only things you are entitled to are yourself, whatever you can homestead with your labor from unclaimed land, and what others voluntarily agree to give you. Insurance payments and every other form of voluntary contract fall into this last category.
> A handout is when someone gives you something you are not entitled to of their own free will. They can stop giving it to you at any time.
"Social safety nets" are not something you are entitled to. The government grants or denies them of their own free will (albeit using others' money). They can be reduced or revoked at any time, or extra conditions can be imposed for claiming them, and you would have no grounds to sue for compensation over those changes, despite having paid taxes to fund prior payments to others.
A handout normally refers to some rich individual giving money to someone or of the kindness of their heart.
2) New guy is unlikely to succeed in a market where there's a natural monopoly already filled by someone else. I'm not going to try to start a competitor to facebook.
3) Entrenched businesses have an interest in eliminating competition. Sometimes this happens naturally (walmart can take advantage of economies of scale in a way that 'mom and pop' down the road can't), and sometimes they go out of their way to prevent competition (e.g. big telecom bribing politicians to pass rules against municipal internet).
The resulting trend being large companies become more and more powerful over time, making it more and more difficult for an outsider to compete. This should be plainly obvious to anyone living in the USA, but it's theoretically the case even under completely non-corrupt circumstances (see https://www.scientificamerican.com/article/is-inequality-ine...).
Therefore, no, I don't feel I could bring in 1000$ without them, but I am still being ripped off. The handout I give my employer is non-consensual.