Ever since Welfare Reform of the 1980s, welfare is structured not to be survivable. It's not in direct cash, it's regular, it's not enough for regular housing so you essentially have to become homeless first to get on it, there is no means to pay utility bills or acquire basic necessities, and no subsidy for transportation. The system is filled with mandates of appointments and documentation but no way to pay for them. In some cracked GOP mind this means that a person will "choose" to work (even though they can't even take a bus to get to work) rather than the impossible situation of welfare. Otherwise, leaving it impossible will drive the undesirables away or even quietly kill them off.
But people just don't lay down and die like that. People tend to do what they can to survive. They turn to begging, prostitution, and crime. The work under the table - even as slaves in exchange for a place to stay.
The State knows this happens because it's the only thing that can happen. People can't exist in non-time and non-space. They aren't conveniently disappearing. They haven't risen in revolution yet, either. Somehow they are getting a roof over their head and getting basic necessities without getting those things through a taxpayer funded social safety net. The taxpayers are happy about that! Everyone wins except the poor guy that gets robbed on a corner. But perhaps when he hands over his wallet he should regard it as the cost of doing business, because for every 1 person that takes the risk of taking what they need, a hundred will meekly submit to slavery and his tax savings will more than make up what he lost on that corner.