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As you add automation and increase production labor gets more, not less valuable as an hour of labor can produce more goods and services. Even with fully automated factories you end up with more goods which then needs to be exchanged, we usually describe these are costs going down but another way to look at it is that the owners of the factories have a glut of goods to distribute for whatever it is they want. You see this in the consumption data, people have more goods than ever before, although a lot of this is eaten by things that are difficult or impossible to automate like housing, which has both a static land component and labor component where the laborer's demand ever more "stuff" for their time, or healthcare which also has static monopolies in the form of drug patents and consumes a tremendous amount of labor. The people supplying that labor have indeed seen their wages and thus bids for the output of the factories increase a lot over the last few decades.
There are of course switching costs that we should take seriously. Learn to code was never a serious remedy to someone who spent 20-30 years doing rote labor and we need a way to help those people, I favor UBI but there are other options.
Not really, although I take this possibility seriously if AI ends up as good as it seems likely to become, that's a much more total form of automation. We're definitely not there yet at this moment though.
But why would a business invest in adding more labour compared to adding more capital? They can choose between either providing good jobs to lower-education people like OP wants or they can choose to invest more in investing in more machinery to replace them. They'll prefer to invest in machinery if they can.
Some labour certainly gets highly rewarded but overall the demand for labour decreases, even as certain highly skilled people are in enormous demand.
The consumption data is an artifact of progressive taxation and legislation I think and our general tendencies towards fairness from the days when people got chucked out of the tribe for being too greedy.
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