This is a good reason for parallel currency. If they print a lot of money and give it to welfare recipients even to the point that fewer people work and welfare recipients dominate the economy. Then the productive could just switch to different currencies that can't be printed, and buy and sell in that.

But a good amount of law makes it hard to use parallel currencies for full scale business. It's not impossible. Just unlikely that the whole economy switches just to avoid proximity to the welfare drain. First is that firms have to pay taxes in US dollars so they do need to have some USD revenue to pay those taxes. Their employees also need to pay taxes in US dollars and so also need at least some USD so its a common denominator of something all employees value. Therefore a company also needs an influx of USD to pay employees. Next is that companies do want to get those second hand welfare dollars. And last is that they make it an accounting hell if you operate in anything other than USD. Similar story if your country uses another fiat.

But as long as you are in an economy with fiat and buying and selling in that economy you are paying a welfare tax even if you were paying zero taxes. If you put goods on the shelf you should be able to take an equal number of goods down. That's what a fair economy looks like. But if they print money and give it to people who don't put anything on the shelf then when you and your fellow workers leave work and make it to the store, you essentially have to bid with your fellow worker for the remaining goods, which is less than you and your fellow worker put on the shelf.

That tax can always be imposed on you as long as you exist in an economy that makes the error of viewing the fiat they print as having value. The correct view if you don't want to pay that tax is that the fiat has zero value. This is true if people choose to perceive it as having zero value, which is their interest to do so if they could recognize that. People obviously wouldn't be willing to trade their time for a currency they see as having zero value so they would have to be paid in something else. And then no one could print money to give to welfare to extract value from you if the units of that welfare have zero purchasing power.

This is why if you really want to guard against the Cloward-Piven strategy you want to remove everything that reinforces USD as having a near monopoly on exchange (or whatever fiat in your country). The top policy that does that is that taxes can only be paid in that currency. It would be very nice to convince a country to accept taxes in bitcoin. They would never be that foolish from their perspective because at least one economist in that government will know that effectively neutralizes their money printer, which is something governments don't like doing. But this is almost obscure enough knowledge that you might convince a government to do this.