In America's most disadvantaged regions, entrenched public corruption and elite exploitation of resources are a far greater cause of persistent poverty than the behavior of the poor. This pattern of 'elite extraction' endures across generations, subverting aid programs.

Medicaid claims for autism in Minnesota skyrocketed from $3M to $400M in five years. This suggests that large-scale entitlement fraud doesn't just steal money; it can also create the illusion of a worsening social crisis by manufacturing data, leading to misallocated resources and a distorted public perception of the problem's scale.

While politicians can ignore massive fraud to maintain patronage systems, the financial markets will not. As the scale of waste in states like Minnesota and California becomes clear, bond investors will reprice the risk of municipal bonds, potentially triggering a fiscal crisis that forces accountability where political will has failed.

A bureaucracy can function like a tumor. It disguises itself from the "immune system" of public accountability by using noble language ("it's for the kids"). It then redirects resources (funding) to ensure its own growth, even if it's harming the larger organism of society.

States can increase congressional representation and electoral votes by boosting population counts for the census. This creates an incentive to attract residents, including illegal immigrants, and fund their needs by leveraging federal assistance programs, often through fraudulent means, effectively offloading the cost of gaining political power.

According to James Burnham's "Iron Law of Oligarchy," systems eventually serve their rulers. In government, deficit spending and subsidies are used to secure votes and donor funding, meaning leaders are incentivized to maintain the flow of money, even if it's wasteful or fraudulent, to ensure their own political survival.

Government programs often persist despite failure because their complexity is a feature, not a bug. This system prevents average citizens, who are too busy with their lives, from deciphering the waste and holding the "political industrial complex" accountable, thereby benefiting those in power.

Seemingly irrational political decisions can be understood by applying a simple filter: politicians will say or do whatever they believe is necessary to get reelected. This framework decodes behavior better than assuming action is based on principle or for the public good.

A significant source of waste stems from "zombie payments"—recurring government funds that continue indefinitely without review. When the official who authorized the payment leaves, retires, or dies, there is often no system to shut it off, creating a perpetual drain of funds to companies or individuals who rarely report it.