Having machines do all the work should be a recipe for universal prosperity and leisure.
That it's a disaster is an indictment of a society that is configured to treat most people like shit for being idle against their will, while massively over-rewarding a tiny proportion of idle people who had grandparents who won the lottery of wealth accumulation (usually by having a single good idea, plus a selfish attitude and a supportive family).
This is not a healthy way to run a technologically advanced society.
People whose jobs are replaced by machines are not undeserving of the income they no longer command.
Yeah the robots can do their jobs now! So this means all the people should just stay at work watching the robots all day and still get paid for it! Brilliant!
No, the people should be paid to do
something elseTM.
Not something productive - that's already being done by the robots - just whatever they feel like doing. Take a college course for the sheer joy of learning something new (rather than as a means to a "productive" job). Sculpt. Paint. Write poerty. Go surfing. Go out to nice restaurants with friends and family. Whatever they feel like doing.
There's a minimum amount of basic stuff. "Essentials": clean water, basic clothing, food, shelter, healthcare, etc. that people need to survive. Back in the middle ages, about eighty percent of the population had to devote their entire lives to these things (mostly growing food), in order for everyone to be able to just live. The remaining twenty percent were able to do something else, which almost invariably meant making "luxury" goods - stuff people wanted, but which they didn't need for survival: Fine clothes, jewlery, furniture, beer, wine and mead, art, music, all that stuff.
These "luxuries" were mostly consumed by the wealthiest few percent of aristocrats and royals; Though some of the middle class artisans were also able to afford some of them.
Fast forward to the 1950s, and the industrial revolution, plus the innovations in manufacturing and technology fostered by two world wars, mean that only a few percent of the population are needed to make all the "essentials". Everyone else is making "luxuries", and the world is a fantastic place. Ordinary people live lives that medieval kings would envy. Everyone has a job making luxuries (or supporting their manufacture), because while there has been some mechanisation, there's not enough to supply all the luxuries people can afford - and with full employment, people can all afford some luxuries.
But then it goes to shit. Automation increases, and now only twenty percent of the population need to work in order to produce BOTH essentials AND luxuries for everyone. And so people are employed in "bullshit jobs" that achieve little or nothing; Or worse, are not employed at all. But society is geared to the assumption that everyone can do something productive. So it denies luxuries (or even essentials) to those who don't - which was an important safeguard against freeloaders, in an economy where it was beneficial for everyone to be productive.
And by denying the ability to demand goods (through not providing an income) this highly automated society breaks down. Demand collapses, leading to less need for productive workers, and hence to further reductions in demand.
The need is there. The desire to buy both luxuries and essentials still abides; But a large fraction of society cannot realise that desire into demand, because they have no money.
And they have no money, because freeloaders are penalized by the structure of the economy. And that structure was put in place because without everyone being productive, society couldn't produce all the luxuries people might want.
But now it can. Automation has created the conditions for a post-scarcity society. But economics is structured with the assumption of scarcity.
Money is a signal. It says "The bearer is allowed stuff to this value". By allowing people to be poor, we deny them the ability to signal the economy to make the stuff they need or want. But as the economy is now able to make that stuff whether or not they work to "earn" it, this becomes needless cruelty.
A common solution to the lack of liquidity in a market is to lower interest rates. This allows the creation of money, as people borrow to do stuff that they wouldn't have bothered to do if money was more expensive. If too much money is created, inflation can be reigned in either by raising interest rates, or by removing money from the economy by taxation.
But now we have interest rates that are at or near zero; And historically low tax rates - but still the economy refuses to boom, and inflation remains so low that deflation becomes a threat.
The solution? Stop trying to lend money to wealthy people (who don't want to borrow it); And instead "lend" it to poor people.
Of course, that's not commercially viable. But governments don't need to be commercially viable. They can "lend" money for an indefinite term at zero interest to all people whose income is below a given threshold. (This is more commonly known as "benefits" or even "handouts").
But the fact is that the boost to the economy from a big cash handout to the poor would be massive. And would almost certainly pay for itself in the long run - some of those "loans" would be repayed with handsome interest, in the form of increased tax revenues in the economic boom that would result.
We can easily afford to pay people to just do
something elseTM. We just need to get off this outdated idea that everyone must be productive.
In fact, we already tolerate a large fraction of the population living unproductive lives of pure leisure - retirees and children being the major classes of such "leeches".
We can easily afford for a far larger fraction of society to live this way. We just need to give them money.