Probably the most overlooked detractor of welfare, above.
The system perverts incentives. Failure is rewarded and success is punished. People are paid to sit on their ass, so we get more of it. The total tax liability of a "rich" person, is well over 50%. So less people work their butts off. What's the point when the Government takes half? The result is an idling of labor capacity, which needs a handout to pay for its existence = wealth destruction. It works the same for corporations. Reward failure (ie banker/auto bailouts) and we get more reckless speculation and bloated unions that suck taxpayers dry. Let the free market police itself (allow failure), and companies judicially police their own finances to ensure their continue existence. The free market works, if we let it (at the corporate, and individual level).