It sounds like you are describing a socialist economy as that statement does not apply to our country.
That statement didn't apply until the past few decades, but if you believe it isn't true now, you might need to broaden your sources of information.
The shift from a manufacturing to a retail economy was maybe going to happen anyway, but the offshoring of jobs to benefit from cheap third world labor intensified it. The shift in corporate culture from satisfying stakeholders to shareholders meant the jobs that remain pay the absolute minimum possible, and are often part time, to maximize profit [and the bonuses to management & shareholders.] To make it worse [for the workers], the hours are frequently irregular, or 'as needed', so they can't even hope to find a second job to supplement their measly pay, as we used to do. And yes, it used to be the entry level job was followed by better jobs, but those jobs don't exist any more, remember? Customer service is in India now, not in Indiana.
Just today I read yet another report saying the jobs replacing those that have disappeared are heavy into fast food and temp agencies - neither of which pays a living wage, or affords the opportunity to get more education, if one could pay for it, which isn't likely. Those who continue to work at low paying jobs do it because they don't have a choice, and pretending they do is just willful ignorance. FYI: most people getting government help are working, not parked somewhere, taking the easy way out. [Anyone who thinks it's easy to be poor has never been there, I promise. It's dam hard work, figuring out what to pay, when there is never enough to cover needs, much less wants: fix the car, or the washing machine? Buy shoes for one kid, or take the other to the dentist?]
Our corrupt cronyism infested electorate have allowed our government to subsidize corporate greed by offering tax incentives in exchange for more low paying jobs, and then having to subsidize the workers with food stamps so their kids can eat. It's disgraceful, how much the working class has lost in the last 3 decades, and how the more fortunate are continuing to heap scorn upon them too.
One more misconception: government aid is granted by the states, in cooperation with the feds, and neither is what anyone would call generous towards the poor, especially since the big reform mandated when Clinton was POTUS. There are strict limits on how long one can collect welfare, and lifetime caps, and job/education requirements as well. I read of some of those requirements being 'relaxed' a few years ago, at the request of many state governors, who "wanted more flexibility in administering funds". If you think they wanted to give poor people more money, then you're just plain off your rocker, is all I can say.
