Yeah this always get's completely glossed over in these conversations.
People always say: "Things ended up working out in the end"
Things only worked out in the sense that society carried on without all the people who lost their jobs.
The U.S. has recent examples of large scale job destruction.
Michigan: From 2000-2009. Massive job destruction. 330,000 auto workers in 2000. Down to 109,000 in 2009. Estimates are that 1/3-1/2 of all those affected never achieved equal/similar employment. That is, somewhere around ~70k-120k workers never earned as much as they previously did. Since this was msotly contained within one city (Detroit), it's pretty easy for the country to ignore it and go on with their lives.
(Detroit was in decline since the 50's really. 2000-2009 is just a particularly bad snapshot.)
Coal mining towns have experienced the same phenomenon but more gradually. The poverty left behind by the destruction of those jobs has never been addressed.
With AI, we are heading into a situation where potentially a much larger amount of people will be affected. So maybe that changes the calculus on the government stepping in and fixing the problem. But I wouldn't count on it.
Sources for Michigan numbers:
https://lehd.ces.census.gov/doc/workshop/2010/LEDautopres031...
https://research.upjohn.org/cgi/viewcontent.cgi?article=1205...
> Since this was mostly contained within one city (Detroit)
It's concentrated in Detroit but also distributed throughout the state, as you can observe in the census.gov slides.
The devastation is regional. It's been a wild experience, watching it all fall apart over the last 40+ years. The decay is immense and impossible to convey to someone from a rich state. Someone from the Eastern Bloc might get it, but I've never been able to communicate it to a Californian. Hop in a car and drive from town to town. Once-prosperous communities are boarded up and gradually reclaimed by nature. Department stores are converted into soup kitchens or marijuana dispensaries.
"Things will work themselves out" is not a law of nature, unless we broaden our definition of "things working out" to include outcomes like "everyone young enough flees, everyone else clutches their savings until they eventually die impoverished."
But with AI, even outcomes like that might be overly optimistic. Where will young people flee to? Where can they go, what trade can they learn, to be safe enough to eventually die in comfort?
When I look at Michigan I see both the past and the future, and I am planning accordingly.