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In a purely capitalistic society, you would be completely right. Of course, in a purely capitalistic society if people consider your reasons for denial absurd you probably won't have any business. Then there would be no welfare.
If you take advantage of the State's services, it's arguable that you are entering into a "contract" with the State in question to follow its rules (even if some of these rules are incredibly stupid).
From the research I've done, pure capitalism is not always the most efficient route due to things such as lack of complete information, outright misinformation, and unfair markets (racism can make markets really inefficient). The American version of capitalism is probably the most balanced in the world (it's why we're still the richest country in the planet); that's not to say we don't have serious problems and we couldn't make our version of capitalism more effective.
There's plenty to improve and I'm sure you have some legitimate gripes. Nag your senators and congress-critters. If you make enough of a fuss and/or get media attention, I hear they get scared.
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