I don't really see many reasons for it not too happen there but I do see some contradictions in your argument. I need my laptop to respond thoroughly though, only have phone right now.

But let me put this another way.

We all agree it's not right to discriminate on the grounds of race, sex or sexual orientation (i assume), yet we find it acceptable to discriminate on the grounds of wealth. A kid from the poor side of town is far more likely to have less face time with parents, eat less healthily, go to a worse school, get a lower quality education, get less years of education, have lower quality healthcare, have a lower paid job and continue this cycle.

How is this fair? It's just pot luck who your parents are, not that different from race discrimination, especially when you consider the correlation between socio-economic status and ethnicity. But forget that really because race shouldn't be part of this argument.

This is what I was thinking about resolving with the free food thing. It would mean no need for poor families to work as long hours which would mean more time for to spend with kids, kids guaranteed healthy food, parents able to spend the money the earn on better quality housing and children having a more equal start.

Now sure, food prices go up, but anyone who is too bothered by that doesn't pay it because they eat for free.

This doesn't address some of the larger issues I think capitalism creates, which is waste on an extraordinary level. You claim that capitalism is efficient and any allocation method not based on a demand and supply pricing mechanism creates massive waste , yet how does toys r us exist if capitalism is about the efficient allocation of resources? People struggle to make ends meet yet there are like 5000 different types of child's doll to choose from. Capitalism created that, which is ridiculous and kinda sick really, but money realised targeting kids with marketing was effective. That is not efficiently allocating capital, it's manipulating a natural market to avoid an efficient allocation of resources and instead maximise the amount the individual has. It's about a transfer of wealth, not efficient resource allocation.