In a welfare state, the people are paid whether they work or not. The people who do work get taxed to support those who don't so they stop working.
Taxes are also applied to businesses at a usually much higher rate (progressive taxation) so in order to stay in business they have to automate as much as possible and layoff older workers who are less productive who then go on welfare.
There is little incentive to train workers in the sometimes very high skills needed to service the automation of the remaining businesses. Those who have the incentive, those who are naturally curious and learn high skills in spite of the educational obstacles put in their way by the public school system, will see the landscape and escape to other places where the pay is better and the tax burden perhaps isn't as high.
This leaves the welfare state without the people who are still needed to service the automation of government. Business can't find qualified workers who are willing to work for the meager wages that the business can pay after the state extracts its taxes so the business will eventually go out of business.
To carry this progression to it's final end, even the government will run out of people and businesses to tax and it will finally sink into collapse.
If you don't believe me just take a look at the result now playing out in Venezuela.