The government spends way too much money on welfare.
When the Welfare spending surpasses the spending of military, social security, healthcare, and among programs, there is a fundamental problem. Americans have lost the sense of independence of self, and are dependent upon the government. Too little people paying into the system, with too many cashing out. Instead of direct payments, perhaps give them benefits such as educational opportunities.
Either way, limit the amount of time people are receiving government support. If we could shrink the welfare state of this nation, the economy would recover in time, among other necessary changes.