Don't they often argue that government handouts are what prevent people from finding jobs, innovating, or moving to an area with jobs.

I don't think it's too hypocritical to accept government handouts because you need it while at the same time wishing you had a job so you didn't have to take handouts

However not everyone feels that way and they use a very broad stroke when it comes to Government assistance which was referred to by some as "socialism" and later "communism"