Neville, if the minimum wage were replaced by a negative income tax, as Milton Friedman suggested, there would be more jobs. Deregulation, lowering business taxes, etc. would also go a long way.
Joseph, they are not doing a chillul Hashem. Chazal presume that a normal person is ashamed to take charity and call it “bread of shame”. So I guess these people disagree with Chazal.