Earlier quoted context omitted.
Hard to make a lot of money when the government provides good services for free.
Hard to have effectively indentured servitude if there’s a social safety net. Remember even Hayek advocated for universal, government funded healthcare! Ayn Rand was on social security!
As a hypothetical, if the government took everyone's houses away and lotteried them back out out I'd say that was a terrible policy. I'd still be happy enough to move in to somewhere if I won a house though, because although the policy is appalling I'd rather be an owner than a renter and there aren't paths to owning.
Ditto, Ayn would probably have preferred that she wasn't taxed in the first place, but if they're going to give some of the money back she'd be stupid not to take it and there is no moral problem for her while taxes >= welfare receipts.