I believe the reasoning for why that should be goes back to the cycle of poverty (http://en.wikipedia.org/wiki/Cycle_of_poverty). It's harder to make more money if you don't already have more money. By giving a one-time lump sum, you give people the opportunity to dig themselves out of that hole. Eating better, dressing better, buying things that last longer, these all have big impacts on how much one can save and earn. Even getting some basic education helps enormous amounts. In the end, it might even lead to people being more willing to work harder and actively save more money.