If you give that same amount to someone in poverty, at best they pay down some debts but it doesn't significantly change anything. They are typically in a financial hole and that doesnt fill the whole but might reduce the depth a little.
”The data are most consistent with the notion that receiving some but not enough money made participants’ needs---and the gap between their resources and needs---more salient, which in turn generated feelings of distress.”
People can't handle important expenses without savings. So they turn to bad solutions like credit card debt which is really expensive long term or defaulting on loans which makes future credit harder, stuff like that harms long-term financial health.
(also because the way things are going we will have people retiring who can't afford it and no fucking way am I paying for it)
[0] https://www.cbs19news.com/story/34248451/6-in-10-americans-d...