> It is the fundamental of capitalism that we will find new ways to earn money
You're fundamentally misunderstanding capitalism. Jobs are a negative side effect of a business making money. If, as a business owner, I can make money without employing anyone, I will happily do so.
The fact that you need a job to make a living has no bearing on whether or not my business will employ you.
When the automobile was invented, horses didn't get new jobs. We butchered them into horse steaks and glue.
Yes, jobs are a negative side effect, but the profits shareholders make from the savings when their companies automate jobs are spent or reinvested into demand-generating areas.
The horses were labor, and were fired once their labour was automated. Capital doesn't require pay every day - people and horses do.
> Yes, jobs are a negative side effect, but the profits shareholders make from the savings when their companies automate jobs are spent or reinvested into demand-generating areas.
It really doesn't.
Say you replace your employees with robots. Obviously, this generates demand, because someone needs to build and repair the robots.
But you know what generates demand?
Paying your non-automated workers.
Replacing them with robots generates less demand then just paying paying your employees. If replacing them weren't a cost savings, you wouldn't have done it!
Productivity gains do result in demand growth, if you pass your cost savings on to customers, but only to a limited extent.
Consider this example: I own a car.
If automobile manufacturing became 10x more efficient, and cars dropped in price by a factor of ten, I wouldn't buy 9 new cars.
This would reduce the amount of money that goes towards salaries of auto workers, or salaries of auto suppliers (Or salaries of auto robot suppliers) - without generating any extra demand.
I won't argue the second point; you might be right about some of it, and there isn't time space to hash it out.
But horses are definitely not labor by economic standards. They have no will or ability to negotiate their work hours. They are owned. They do not require pay. They require maintenance; their feed and care is like oiling a tool or allowing a motor to cool. They are and always were property with a special exemption against cruelty for recognition that they have sentience.
You're fundamentally misunderstanding capitalism. Jobs are a negative side effect of a business making money. If, as a business owner, I can make money without employing anyone, I will happily do so.
The fact that you need a job to make a living has no bearing on whether or not my business will employ you.
When the automobile was invented, horses didn't get new jobs. We butchered them into horse steaks and glue.