[imtringued]

Automation reduces costs. Competition reduces prices. Consumers spend less money on the same type of good. Consumers can now save money or spend it on other goods.

Imagine universal automation exists: .e.g a machine can improve the productivity of every human by 10x. There are two possible outcomes: Humans work 10 times less for the same standard of living or humans work the same amount of hours for 10 times the standard of living.

In theory it's actually not possible to choose the first scenario because it's guaranteed someone will choose the second option to get priority access to a rivalrous exclusionary good (like land) which often has no soft price ceiling because it's not possible to produce more of it. People who can only find part time work during the transition to a new industry still have the same standard of living as before automation but they might no longer be able to afford the non automated expenses like housing.

The primary problems that should be addressed are basic costs of living. Extreme example: If it only costs 10% of a median fulltime salary to stay alive then it doesn't matter if you're poor or not. You can still afford it.