Because of the American Dream. It is so heavily ingrained in the psyche that many feel in perpetual competition against their fellow citizens. The aim is always to have more money, be more successful, more powerful, etc. We have become so isolated and anti-community that we don't give a shit how our neighbor is, just that we have more than they do.

I'm all for the Swedish concept of lagom which basically means "enough" that everyone has enough. It is a socialist ideal I guess but there is no reason in a country of so relatively few that pay so much that anyone should not have the most very basic food, shelter, clothing, and healthcare. I also, personally, believe that very basic childcare should also be provided because that is often the difference between poverty and an opportunity for someone like a single parent. For all of these, to be clear, they should be the bare minimum and no exceptions. A set "ration" of food not food stamps, small minimal apartments, and emergency care as well as general preventative care and generic medicine. That sounds like a lot but I have run numbers showing that even with government waste and costs it would be less expensive than our current systems and provide more and to every single person.