alt Hacker NewsIf you have machines that substitute for human labor, wages fall to the cost of manufacturing & running the machines, which is well below human subsistence level. Fortunately, you also get very high economic growth rates. So even people with small amounts of money invested will end up far richer than when they had a job. Then the question becomes, "What happens to people when machines are far more intelligent & powerful and are doubling every few months?"
Falling below subsistence means people starve and cease to exist until supply and demand equalize or “something else” happens. That’s what Smith was getting at. Thus subsistence is a price floor for human labor.
Something else could mean developing a new concept of ownership or a new form of redistribution.