Similar to managed welfare vs UBI.
One is creating defined resources and using bureaucracy to divvy them out and force people into buckets they might not be happy with. e.g. here's your government cheese.
The other empowers individuals to make their own decisions with cash and lets the free market figure out how best to mine those dollars from the individuals receiving them.
I suspect which option a person thinks is right largely depends on how they view humanity. Either you want to trust people to make their own decisions as adults, suffering the consequences of their decisions, or you want to extend childhood deep into "adulthood" making sure they can't make the wrong choice, because the nanny state makes the choice for them.
I supposed in the case of managed welfare, only those who manage become independently wealthy get the privilege of making their own decisions.