Of course if you make your populace penniless you don't need their votes, they cannot raise a force to oppose you. At a certain point in this conspiratorial argument the logic breaks down. Anyway, if you don't like the negative effects of a large, poor group casting their votes to get stuff, don't have a large, poor group.
In my opinion, this whole conversation becomes irrelevant. Oil just peaked it's head over $100 while no one was looking. Rising gas prices will be the harbinger of disaster for the Obama campaign.
Great idea, lets end ALL welfare NOW. When the poor get hungry they'll work. Then they won't be poor any more.
Even Bill Clinton saw the logic in that. Unfortunately, Obama likes having a large dependent poor class to pander to.
What makes you say it isn't already on that spiral considering: Debt ceiling Unemployment Stubborn politicians Corrupt politicians Superfluous wars Wasteful government the list goes on.