So bad to be treated like a child for their entire life. They're really suffering not having a mortgage to pay every month. Instead they're saving up for their kids college.
It's not government paternalism that's terrifying, but cultural demonisation and paternalistic contempt for the poor, combined with unthinking adulation of the extremely rich.
People in the US who live in a comfortable six-figure-middle-class bubble really have no idea how precarious their position is.
All it takes is one expensive long-lasting serious illness and they'll be out on the street with the other people who "made poor choices."
You declare bankruptcy, your assets are divided up among your creditors and you start over again. That's why bankruptcy exists. Several (most?) states even let one keep one's home. Maybe we need a law to prevent landlords from refusing to let based on prior bankruptcy — would have to think that through. Bankruptcy is not (or at least should not be) the end of the world.
Children also get to suffer for policymakers poor choices of what the stamps should be spent on, and taxpayers get to suffer the cost of every benefit program duplicating income verification functions and other eligibility functions rather than having universal programs where the tax system takes care of the better off not getting unfair share of benefit.