This may come as a surprise to you, but there isn't a "right" way to live life. You can pretend you have all of the answers everyone needs but in reality you don't. Your answers are actually just your judgements of how you would live their life if you were them, and you haven't lived their life; so since you're not aware of what kind of circumstances put them in the position they're in, why do you honestly think you know what's best?

It's very strange how narrow minded most people are, logic only applies to their own lives and no one else's. If people are abusing the system on purpose, chances are VERY VERY high they have zero people in their life pushing them to better themselves. I'm sure you have all of the answers for this scenario too, but sometimes people are raised a certain way and see nothing wrong with the people they surround themselves with. You might say 'get better friends' but why would anyone do that if there's nothing wrong to begin with, because they were raised to think their actions are normal. Just like you have justifications for everything you believe that you've collected over your life through family, friends and experiences, so does everyone else.

Some people work full time in shitty jobs and still wouldn't meet your criteria for reproducing, so who will work all of the service jobs? Americans pride themselves on the luxurious type of lifestyle we all live, people serving us in a variety of ways- someone who would work those jobs wouldn't be able to reproduce, and people fitting your requirements would not work them.

There are many people always judging and condemning you too, don't think you've escaped the wrath of American laziness of intellectual thinking. There are people that could tell you how to live your life better too and some might be right, but it's your life and your choices, no one has any place to tell you what you should be doing with your time on this planet.