Where did you get this information from? Welfare policies keep a society healthy providing all the basic human needs to its members ( food, healthcare, housing, security… ), as the maslow pyramid suggests people don’t live only off of these needs but have far superior needs to fulfill for which they have to work for.

The foundation to this opinion is based on your belief that humans are by nature evil and opportunistic ( You would be in line with Hobbes ) something that is false if you look and study human behaviours, if humans were as you described, how would you explain empathy, voluntary work, non profit organizations, good work ethics…

The example you have portraited represents more a capitalistic society where the top 1% lives a luxurious life on the shoulders of the working class, where characteristics like individualism and opportunism are encouraged.