Can you spare a dollar? I need a beer.

Exactly, it's not related to me at all.

there's a whole class of street beggars pretending to look needy

Yep, in some areas that can actually give a middle class income.

Imagine working hard on a low income job, but you make enough to "fit in". You have a house, you have a car, your kids can join class trips.

Then there's a beggar that's making more than you, but doesn't have any kids. They have a better house, a better car, and goes to Thailand for two weeks every year.