It will cost more to supervise someone who does not want to work than it will to automate the job or hire someone productive.
No it doesn't. If their job is to do an automated task, the task can have a built in quality control. If they don't meet a minimum standard, then they don't get paid.
Example: My wife runs a educational website where teachers/parents can upload content. But before kids can access the content, it must be reviewed for inappropriate content (porn, profanity, etc). She uses Amazon's Mechanical Turk to hire workers to screen the content. 90% of the content is new, but 10% is randomly inserted content that has already been screened, and is known to be either be either appropriate or inappropriate. If the Turkers don't handle these tests properly, then their work is discarded, and they don't get paid .
The workers she hires are from India, Pakistan, Philippines, Indonesia, etc. But never from America. I see no reason that welfare recipients shouldn't be put to work on tasks like this instead of munching potato chips in front of the TV.