Those opposed to welfare are Fucked. We are headed towards a future where automation will allow for 95% of people not needed, and 5% of human labour will be all that's needed to generate the world's GDP. When we get there... you either give the people that "aren't needed" a welfare or prepare for a total catastrophe.
We are still quite far from the type of automation that will allow for 5% employment. Even if the majority of production is automated, there are still many other components of a goods producing business that may not be automated if they are competing in a relatively free market. Procurement, logistics, marketing, sales, support, R&D, etc. would still require a human component without AI right? Then there are service industries.
I consider Tesla to be one of the most technologically advanced companies, where a large portion of their production is automated, but they still need to employ a ton of people, not only in production, but for the other components of running a business.
To your point, there would need to be a better way of distributing resources aside from time-based income though. Almost sounds communist.