Where are you going to get that stuff you're going to give people? A giant government procurement contract? Who will decide what goes into it? The problem with your suggestion is you're trying to do soviet-style central planning of consumption, even if only at "basic needs" level. As history shows, it will be both cost-inefficient and not inadequate at meeting the basic needs.
Where are you going to get that stuff you're going to give people? A giant government procurement contract?
Or perhaps many local ones. But yes, exploit the capitalist system and let the cheapest provider win.
Who will decide what goes into it?
The political system. Basically, there will be a public itemized list of what people gain from the welfare system. Periodically, progressive types will say "oh no, the poor lack XXX", and XXX will be added to the list of items. Conversely, conservative types can read the list and point out "WTF, why are we paying for YYY", and get such items removed.
It's far better than the current system, in which basically no one has any clue what goods and services the poor have access to. This enables progressive types to say "oh noes, the poor are barely surviving" and conservatives to say "they all drive cadillacs", and neither side can refute the other without reading obscure Census reports (and obviously no one does that).