Ok perhaps not a 'complete' lack of understanding but is arguably significant.......I would still say that if you were in an asylum seeker type situation you would have a different perspective.
Same with the unemployment situation. rather than just piss and moan that some people refuse to work and want handouts, ask 'why'?. It could be a family/culture intergenerational thing, as discussed earlier, and this may be the easiest problem to solve via proposed incentive plan. But, some may have physical/mental problems which mean they cannot function in a workplace, but don't qualify for disability either. Maybe their area has limited opportunities, and they cannot move because they care for an in-firmed relative in an unofficial capacity. Who knows. There are many, many different potential reasons why people wind up on the dole for prolonged periods. However, just because you have a particular perspective on how to approach life with a unique set of values, it doesn't mean everyone else does, nor should they. You may have learnt to act in your best interests, but some people never do.
If everybody acted in their best interests there would be no crime, workplace accidents, suicide, bankruptcy, obesity, addiction, road crashes, smoking, binge drinking, coward-punching, and so forth. It is obvious we a country of 23 million imperfect people.