I don't know you, Dave, so I don't know if you are making that up but I have known people who have done similar things so I have no reason to doubt you. Also known of people who were clearly in need of assistance, especially medical, but who refused to accept it out of shame.
I think more and more people are doing what many would call abusing the system. Even some of those people would call it that themselves. They rationalize or know that other people must be doing the same so why take the high road and come out looking like a loser.
There will always be a certain percentage of the population which has no scruples and will cheat or take advantage of loopholes in our social welfare system. I suspect that percentage is increasing and I can tell you that one major reason it is increasing is because of asswipes like Kenneth Lay and other obscenely rich people who you idolize. People are becoming more and more aware of just how corrupt big business actually is and they are discouraged and fed up and decide that if the big guys are going to steal, then so will they.