The problem is that many people aren't smart enough/don't care about the consequences because they've always managed to slide through tough spots.
By the same token, corporate welfare is basically needed to prevent inversions. We ARE held hostage by our job creators (Regardless of your country) by the threat of inversion/bankruptcy.
The answer is really that it's not big of a deal. In this age of extremely effective workers, others can do the jobs that the lazy are too lazy to do, and the lazy barely get any quality of life.
Of course, that depends on the country, but generally speaking it's not a huge problem in most... The exception I guess would be Sweden where some immigrant groups have between 50-80% unemployment after 1 decade of integration. In those cases maybe welfare/social services really do need to be shut off.
But is the civil unrest worth it? As more jobs get automated do you really want the extra competition?