That's one of the dumbest libertarian memes.
Truth hurts, huh?
A government which doesn't give you anything can also take away everything you have.
It could happen, yes. But the government, that's not expected to take care of all the citizenry's needs, does not need to become so powerful and omnipresent as to be able to take it all away.
So, there you go — a government limited in its responsibilities can remain limited in its power over the governed. The government expected to provide for all — can not. It inevitably becomes powerful enough to abuse the citizens. Whether it actually does abuse, well, TFA seems to provide an example... Numerous others abound.