They must constantly show real proof they are looking for work and even with part-time jobs their assistance is immediately scaled back.
This is simply false. The vast majority of the poor are not looking for work, nor are they working. Nevertheless, they consume an average of $30k/year.
Did you even bother to read my link?
You aren't going to make assistance less attractive than a minimum wage job, it's impossible.
It's hardly impossible, but I agree that a lack of dignity is probably insufficient to push more than a few people over the threshold. That doesn't mean we should skew the incentives even more toward couch surfing and away from work than we already do.
Furthermore, it is likely that in many cases the very poor don't work because they are unable to -- mental illness is a commonly cited factor, but these days it's hard for anyone to get work -- particularly those lacking high school degrees, for instance. If someone cannot work for such a reason, then by attempting to punish them for not working you simply reduce their already-slim ability to contribute to society.
Edit: removed rudeness
In reality, humans rich and poor alike have many considerations of equal or greater importance than their utility function. For example, people not work full-time because they are in school, because they are practicing an art or craft, because they are taking care of family, because they have a wealthy benefactor, because they are employed in an illegal trade like drugs or prostitution, or because they are trying to break into a difficult industry like film.
If you wish to claim that the poor disproportionately prefer to gain other things than wealth (e.g., they prefer hobbies/long shots over work which might earn them $0-30k), you are agreeing with me.
We also seem to agree that "a lack of dignity [or other minor disincentive] is probably insufficient to push more than a few people over the threshold [towards work]" (as I said a few posts up).
I'm always glad when I can convince others (including others with whom I share different values) of the correctness of my pet hypothesis. It suggests I'm on the right track.
The modern welfare system does not allow non-disabled people to draw an infinite amount of assistance - it's very restricted and for a finite amount of time. They must constantly show real proof they are looking for work and even with part-time jobs their assistance is immediately scaled back.
Assistance shouldn't be a punishment, it should be care and kindness while someone gets back on their feet. You aren't going to make assistance less attractive than a minimum wage job, it's impossible.