Is poverty a moral failing?
At what cost?
Minimization of poverty is important but I don't believe it can ever be totally eliminated. You and I just have different fundamental beliefs about human nature and motivation.
If the OP is right (and I think he is), the more safety nets and welfare programs there are the more poverty. This is because they have a learned helplessness and are subject to fiscal cliffs preventing them from escaping poverty.
in other words: Poverty ought to be minimized. Therefore, if giving people free shit increases poverty, we shouldn't do it.