> Kids that grow up in this environment are likely to develop grit and cooperative spirit
Alternatively, they may grow up dispirited and disillusioned, because they had no choice in the matter. Maybe they'll want to leave Mars and go to Earth. Or maybe they'll just be pissed off and lazy, wanting to watch the world burn, so to speak.
If you want to keep the kids in line, you'd better have a totalitarian government that restricts their access to information, to prevent them from discovering that life on Earth is so much better than their own miserable lives.
"Mommy, I want to go outside and play!" "Sorry honey, but outside will kill you. Now eat your manufactured nutrient packs and drink your recycled urine."
The initial group of settlers will self-select themselves; not many of us are willing to live in such harsh conditions.
Kids that grow up in this environment are likely to develop grit and cooperative spirit, and they will see first-hand how it is necessary just to survive.