Yes, the system is backwards. It as you said hinders people from getting out of the rut and encourages them to stay on the system, so to speak. Once people do get a job their money is held against them in many housing developments and their rent will skyrocket all at once rather than slowing increasing. Again, as you said, people can not save up to get out either as their funds are held against them.

At this point people ask themselves if they should stay on the system, have a roof over their head and food to eat or should they get a job and live in their car if they have one.

Again, I have always thought the system was fucked up. And yes, I do think there are many people that do take advantage of it but in the end it is the people that really need the help that get screwed over.