I disagree with regard to Hale County. Freeloading behavior became tolerated. The tacit endorsement of it became a cultural norm and it further discouraged productive economic behavior. They have the good fortune of living within a country large enough that one lagging region can be supported by the economic productivity of the country- something that comes at the expense of the other taxpayers. If they generally have the capability to support themselves but are instead choosing not to because it's easier, then they are freeloading.

If Hale County existed as an independent economy with no transfer payments to it, I wouldn't judge its population negatively. Or, if they were using the system of unemployment benefits as intended (as opposed to the system of disability benefits), then I wouldn't judge its population negatively. These systems were each established for their own purposes and twisting the intent of disability benefits to achieve personal gains is shameworthy. The fact that the people interviewed have to rationalize it is evidence that they are aware that what they are doing is shameworthy.

I think your arguments still are relying on misdirection around certain words- especially words that come with negative judgements against people that are suffering. i.e. the poor cannot act upon moral hazard, or the poor cannot be freeloaders. Well-intended moral judgements can still cast shame upon the poor- if you are poor, yet capable of working to improve your lot, and choose in the long term to rely on the involuntarily-given (taxed) aid of others, that is shameworthy. The preferable outcome would be to adapt, and to make your own way in life without taking from community resources. The whole community does better this way.