There's a profoundly messed up bit of thinking deep in the psyche of a lot of Americans behind this. I think, more or less, it has to do with the idea of America as a specific (and even ideal) instance of the Just World hypothesis -- that is, America as a place where one is more free than anywhere else (even
perfectly free) to make their biggest dreams come true, or fall as deeply as their character flaws will take them.
Thus there are two kinds of people: the "Worthy" (good, honest, hardworking, smart), and "Those People" (lazy, dishonest, moochers, criminals).
In this narrative, Those People deserve a hard lot. Second chances? That's for Worthy people who just hit a spot of bad luck. Or people who can change, and given that Those People have deep character defects, what are the chances of that? The only thing that could possibly get them to change is harsh discipline and a hard life. Plus, why waste a decent job on one of Those People when there are so many Worthy who need a job and deserve it more?