Well, not really. Why work when you don't have to pay for anything? Sure there are some conscientious people who will keep working, but their number will get smaller and smaller over time. People always are looking for easiest way to survive, its human nature. As they get fewer, less resources are created, and the city, or country, or empire collapses. You can see this in the growth of our current welfare state. As time goes by, more and more people are on the public dole. When I was a child, it was considered to be an embarrassment to collect welfare. Now, people try to figure out how to get more welfare. And at some point in the future, the US will collapse under the weight of pension payments and Social security payments.

There are many examples of this throughout history. The Roman empire, Jamestown colony, Soviet Russia leap immediately to mind. It never ends well.