Totally baloney... with a little exception. It's true, that a welfare state culls some of the reasons to make an uprising. But a welfare state doesn't take away any ability to self organize, or ability to work with each other.

A true welfare state would promote innovation and aspiration at the bottom. But a welfare state created to shut the protests down, would have welfare with demands. Like if you get welfare you should spend all your time looking for work, and you can't earn anything, and your help will only be enough to survive.