>This sounds a like an argument that social programs are extortion

I think the point is that human behavior at scale is not really that different from natural disasters. Not protecting against poverty in your surroundings would be comparable to building in a flood zone. Fixing that problem is not extortion anymore than building dams is paying protection money to the sea - there's no poor people shouting "cover my basic needs or else", but we know enough about our own race to know the issues that emerge with poverty.