"welfare hurts the poor"

[Kirkland]

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If they would really be better off without welfare they wouldn't take welfare when given the option but would do all the things you would say they would do if there were no welfare (for example, prepare better, save more, work more etc) even though they have the option of going on welfare; in other words, if it were true that welfare hurt the poor, they would avoid taking welfare because "welfare hurts the poor" (i.e. them).

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You are correct that people who take welfare are acting in their own best interest, that it is the correct decision for them. However, this is not what is meant when ACists say welfare hurts the poor. The way welfare hurts the poor is by changing their incentives in a way that it is sometimes better to choose not to get a job, not to save money, etc., whereas if there were no "safety net", their incentives would be to protect themselves in different ways, by securing a steady income, preparing for rough times, and generally being a better member of society.

The ACists might say welfare "forces" the poor to make bad decisions, but I don't think it's that clear cut. Someone who is smart enough to realize all of this might choose to be worse-off short term, and not accept welfare, and build a better life for themselves. However, there is a correlation between being poor and being dumb, so the ACists would get rid of welfare in order to force the dumb-poor to take responsibility for their own lives.