The government itself is a regulatory body that at the end of the day its purpose is to let its citiizens do the best they can without limiting them and while they can still focus tax resources on supporting the poor it would be much more benefical to have completly capitalistic system with government charities and the government encouraging an attitude towards supporting the poor without forcing anything would be best
Let's put it this way: The goveronment is to protect the rights of the bpeople, that's their job, among these rights are life, liberty, and the pursuit of property (capitalism), this means that the goveronmnt should protect capitalism, which can be embodied by the free market and competition, if there is a monopoly, there isn't competition, thus- no capitalism, and the goveronment has a duty to prevent this.
Believe it or not Adam Smith said many things you would not expect him to, for example:
No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable. ” - Adam Smith, protesting income inequality
“It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion." - Adam Smith, advocating for a progressive tax.
“In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest.
Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.” - Adam Smith, challenging low wages.