Look, I know I will be accused of being heartless.
Are mental health problems self inflicted? Are relation breakdowns self inflicted? Are benefit screw ups self inflicted?
Of course many relation breakdowns are self-inflicted. Mental Health problems may be self inflicted, depending on what they are. The circumstances leading to a need for benefits may be self-inflicted. Not all, but not none either.
Take this
"The awful thing is, inequality (including absolute poverty) is the very foundation upon which capitalism is based. "
It just isn't. Western societies are based on opportunity for all. Of course some start out better off than others. However relatively, the vast majority of us are much better off than our ancestors, and certainly much better off than most people in many third world countries. We all have wonderful opportunities. Many of us succeed in advancing ourselves to an incredible extent. Some don't. It's better to have the opportunity and fail, than to be denied the opportunity at all. We wouldn't have cars, computers, TV, foreign holidays, restaurants, without capitalism. Do you ban all gambling companies because some people can't control themselves? Do you ban alcohol and tobacco because some people can't control themselves? Do you ban drugs because some people can't control themselves?
You don't see many people (refugees, or economic migrants) trying to escape the West to move to Africa and Asia, do you? It is just puerile to pretend that 14m (a quarter) of the population are in poverty.