I'm a big fan of Jerry Pournelle's The CoDominium science fiction series. In it, as Wikipedia explains:
The United States of the CoDominium Era is a welfare state divided into two classes: Citizens and Taxpayers. "Citizens" are welfare dependents who are required to live in walled sections of cities called "Welfare Islands." People are given whatever they need, including the drugs like Borloi to keep them pacified. There are no limits to how long they can stay on welfare, except that they must live in a Welfare Island. Although people are free to gain an education and work or become a colonist, many citizens did not, preferring to live their whole lives supported by the government. Generally citizens are uneducated and illiterate. Some BuReLoc involuntary colonists are Citizens. By the late CD era, the Welfare Islands were three generations old. "Taxpayers" are the working, educated, and privileged upper class. They carry identification cards to separate them from Citizens.
On paper, given Obama’s record, this election should be a cakewalk for the Republicans. Why isn’t it? I am afraid the answer may be that the country is closer to the point of no return than most of us believed. With over 100 million Americans receiving federal welfare benefits, millions more going on Social Security disability, and many millions on top of that living on entitlement programs–not to mention enormous numbers of public employees–we may have gotten to the point where the government economy is more important, in the short term, than the real economy. My father, the least cynical of men, used to quote a political philosopher to the effect that democracy will work until people figure out they can vote themselves money. I fear that time may have come.
He may be right. And, if so, the big question is what comes next? Pournelle's fiction may be on its way to fact.