> Just because there are new jobs doesn't mean the people whose jobs were automated out of existence will be able to take them.
Yes it does, because those are the people whose labor will be available. They'll take whatever jobs they're qualified for, which may lower wages in those occupations until the lower price increases demand or reduces supply by driving anyone currently in those occupations who is qualified for another job into the other job.
The change isn't necessarily Pareto optimal. There can be people who are worse off because the amount their cost of living went down was less than the amount their wages went down. But for most people it will be the opposite, because the change is an increase in productivity. You get more production with less labor, so you on average need to do less labor to meet your cost of living.
Yes it does, because those are the people whose labor will be available. They'll take whatever jobs they're qualified for, which may lower wages in those occupations until the lower price increases demand or reduces supply by driving anyone currently in those occupations who is qualified for another job into the other job.
The change isn't necessarily Pareto optimal. There can be people who are worse off because the amount their cost of living went down was less than the amount their wages went down. But for most people it will be the opposite, because the change is an increase in productivity. You get more production with less labor, so you on average need to do less labor to meet your cost of living.