Prior to the great depression, local benevolent societies took care of the local poor and sick folks. Many more charitable hospitals back then.
But support for those fell off as the middle class didn’t have enough to cover the depression.
For that event, it was worth it for the gov to get involved but the problem is the gov didn’t stop when the depression was over.
When govt gets involved in charity, little of the money taken in actually gets to those in need. Most of it goes to the govt itself to pay for employees and the infrastructure required to support them like buildings, office equipment, and IT.