The idea is a myth in the sense that it was concocted and expounded under false pretenses in order to stir some very vile human emotions (which you seem to be buying into with barely restrained glee). We have all had that experience where some dude at the grocery store is buying lobster with his food stamps. It's upsetting. But it also makes the mind prey to the
availability heuristic, which will significantly distort attempts to properly contextualize the experience.
Let me put this in some more perspective:
Total TANF and MOE expenditure (aka "welfare") in 2009: $33.5 billion
Total bonuses given out by five largest Wall St firms in 2007: $39 billion
You may recall some financial events happening in or around 2007. Strange, isn't it? We sit passively while guys in suits line their pockets with inconceivable sums of ill-gotten money, but the lady buying Smarties with her WIC card sends some of us into hysterics.
Why is that?