In the poorest areas there are strong incentives for the residents to spend any extra money on necessities such as housing, housing maintenance, utilities, food

In the poorest areas there are strong incentives for the residents to spend any extra money on necessities such as housing, housing maintenance, utilities, food and clothing. Much of that work would be done by other residents or local businesses. As far as I understand money distributed this way gets cycled through the economy at a high rate, changing hands many times.