the unproductive majority by stealing from the productive minority
The unproductive majority he is referring to is the welfare class and for the sake of argument could include the 1% others have referred to as well. The productive minority they were referring to in this context would be people like the working class, productive professional class, lower merchant class(the old middle class), etc. The ones that actually produce not leach off everyone else. Whether the elite and poor together are the majority might be debatable but I couldn't stand everyone misunderstanding each other any more. There, clear as mud.
So then, you apparently believe the USA is not a democracy and never has been
Correct. It was a Democratic Republic not a pure Democracy. The important distinction is that the we have a constitution that is designed to protect us from ourselves. You will often hear people say "We are a nation of laws" They are talking about the fact that we are governed by laws rather than mob rule or dictatorship. As an example I live in California, we are effectively a democracy now and keep voting down the new marriage laws even though we otherwise seem like a progressively liberal state. So the rule of law, in other words the courts, are trying to step in and save us from ourselves.