I'm always amazed that the rich think they can hide in their gated communities and enjoy the fruits of other people's labor.
I'm always amazed that people don't get this simple truth:People tend to avoid whatever the government makes more expensive and gravitate toward whatever the government makes cheaper
This can be accomplished by active tax policy (e.g., raising taxes on luxury items or "sin taxes," enacting tax credits like for having children or performing energy saving upgrades to your primary residence), or by passive tax policy (e.g., allowing nearby jurisdictions to be more competitive from a taxation stand point).
For example, this is precisely why people constantly travel from New Jersey, Pennsylvania, Maryland, and even further away to buy stuff in Delaware. NJ, PA, & MD all have relatively high sales taxes, while DE has none. This is also why lots of big US companies (Microsoft is the only one that springs to mind recently, but there are others) funnel lots of their revenue and profits through affiliates in Ireland (which has a much lower corporate tax rate than most other industrialized nations). This isn't rocket science, it is simply understanding fundamental human behavior.
The biggest flaw in your assumption, however, is that we can keep widening the social safety net indefinitely. Eventually, people will need to become responsible for themselves again and own their own fate.