However, real benefits of government funding can still exist. If we agree that work by PhD students in the humanities can create real benefits for a country, then there can be real benefits to having researchers come from a variety of economic upbringings, not just from wealthy backgrounds.
Many academics do social science research on how to craft better policies to improve the health and economic outcomes of underdeveloped rural parts of a country. They can arguably do more effective research if some of the researchers are from a low-income rural background. To achieve this benefit, a social science undergraduate education would need to be subsidized, so the student is eligible to work at the PhD level.