Chazal assume that a person would be ashamed to take any type of charity. Thus, the highest form of tzedaka is to provide a job (Shach, Yoreh Deah 249,7). This is best accomplished by the free market. In fact, Milton Friedman points out in “Capitalism and Freedom” that his enabled Jews to prosper in America despite discrimination.
Unfortunately, there is an attitude among many that it is not necessary to find a permanent appropriate solution for someone as the government will take care of him. Moreover, some people like to keep others in dependency either as a means of controlling them or so that they can continue to feel good about themselves. If there were no poor people they would probably make a few poor so that hey could give them “tzedaka” every so often.