Rand always failed to contemplate the strength of numbers.
If the useless outnumber the productive by a wide enough margin, it becomes encumbent on the productive to care for the useless out of ones own selfinterest. When poor people live too badly they revolt in huge numbers and cut the heads off the wealthy. Yet the wealthy never seem to learn that billions of poor people will always be more powerful than any handful of oligarchs during the rare times when te herd is motivated to act.
Social programs, reasonable healthcare, stable food sources, distractions from hardship... Providing that is a very small price to pay for the productive to keep their heads.
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