Virtually all of it goes “to the people.” Even the military budget is mostly payroll or operations (only 18% is procurement going to defense contractors). Social security is checks to individuals. Medicare is checks to healthcare providers.
A lot of those 4000% markup stories are apparently not real, but rather accounting artifacts; they're cases where, like, a wrench bills out at $20,000, but what's actually happening is that the procurement was for a whole stealth bomber, and the cost gets spread across all the line items pro rata.