The Wikipedia quote he references is only partly correct, as anyone who's spent time reading the stories in the CoDominium universe can tell you. Citizens wind up eating "protocarb glop" and other synthetic foods that are handed out by the government, doing drugs (ditto), and -one imagines- wasting their lives watching TV. Unfortunately, they still have the vote. You can learn to read, get an education, and get out of the Welfare Islands...but you've moved from the frying pan into the fire, since it's the shrinking pool of middle-class Taxpayers who are shouldering the burden of the taxes needed to pay for all this largesse, to say nothing of the CoDominium Marines who put down periodic riots and BuReloc that ships the surplus population (and Taxpayers who pissed off the wrong people) off to the colonies, to survive or not depending on whether they can bribe their way to someplace decent like Sparta or merely horrible like Tanith. Also, reading and getting an education aren't too popular in the Welfare Islands; I'm pretty sure that the comments about life in the Welfare Islands as described in the Helot War novels (Go Tell the Spartans and Prince of Sparta, both co-written with S.M. Stirling and included in The Prince) are just as much an expy of current inner-city trends as they were in the 1970s when Pournelle wrote the original stories.
The only differences between this universe and Pournelle's are that we didn't form the CoDominium with the Soviets and we don't have the Alderson Drive to GTFO of this system so freedom can prosper somewhere else.
As otherles would say, "What are your questions on this block of instruction?"