"What government exists for is to secure a free sphere within which every person has an equal opportunity to exercise their God-given talents for the betterment of themselves and mankind." Ah! Therein lies the rub. The current system of non-aid or disproportionate aid does neither. The kid from the ghetto does not have the same "equal opportunity" that a kid from a richer neighborhood does.
Ironically, the most productive countries are those that impose a more-or-less permanent class separation so that the downtrodden "know their place." Maybe Ayn Rand was right in her belief in that. Only, she took government handouts too, as it turned out.