A Man's Home Is His Subsidy." Stossel discusses how this unlimited benefit undermines the desire to work and move off of the system.
In addition to creating dependence, I have seen how Section 8 housing can destroy a community. It's frustrating when people work hard to live somewhere and then they see others move in and start causing chaos.
No, I'm not saying that everyone on Section 8 is destructive. However, the patterns of behavior that made housing projects uninhabitable don't stop just because people move to decent communities.