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No, you're missing his.

Technology progresses. You're playing to an end-state of AI that assumes labor disappears entirely because you have yet to see what the new labor system looks like.

Yes, because the "smarter tasks" that can't be automated and that become the new job sources don't exist.
We survived fine as a species when IBM's automatic machines replaced the ledger clerks of yore. That wasn't even such a long time ago.

We'll survive this transition as well.