To put it simply, the welfare goes to the class under the working class, the welfare class. They get little out of it.
Is that a fact? Is it true everywhere? Welfare systems are generally intended to tide people of speaks of unemployment. You write as though the workers never claim, and the claimants never work.
An article from the Wall Street Journal. The original title might be slightly mind-killing for some people, but I found it moderately interesting especially considering that many LessWrongers formed part of the data set for the study the article talks about and a large fraction of us identified as libertarian on the last survey.
Inside the Cold, Calculating Libertarian Mind
The original paper.
Understanding Libertarian Morality: The Psychological Roots of an Individualist Ideology