Does God want people to be held back from reaching their potential though?
No, but remember the Apostle Paul said in Phil 4:11-13
"11 Not that I speak in respect of want: for I have learned, in whatsoever state I am, therewith to be content.
12 I know both how to be abased, and I know how to abound: every where and in all things I am instructed both to be full and to be hungry, both to abound and to suffer need.
13 I can do all things through Christ which strengtheneth me."
Because circumstances might arise where we cannot fully reach our potential doesn't give us an excuse not to do all we can.
I understand your frustrations when it seems half the population would rather freeload than work, but there are people who are genuinely in need, and helping them is right. Using good judgment is also helpful. For instance, when people ask me for money for food, rather than give it to them, I tell them I'll buy them a meal. Some take it, others don't because they were lying and just wanted the money for alcohol. But I was willing to help their need, it's not my problem they lied.
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