The people then become mindless zombies of the state
Zombies perhaps. Mindless I doubt.
The old protestant ethic that idle hands are the Devil’s workshop is true.
The welfare state has provided a bumper crop of idle hands in the Western World and those many of those hands have been at the Devil’s work.
People occupy their time at constructive work to provide their own welfare have ample time to do destructive work. Idle bored people will find something to occupy their time.
All too often people not occupied earnestly trying to make a living find that they can occupy their time with crime.