(Of course this breaks down heavily if the human buying power stops constantly rising and there's de-facto less demand for goods and services)
This is what I'm talking about. I can easily envision waves of layoffs in areas like the service industry that historically have been highly resistant to productivity increases in the past. Hell, there's a whole industry based on arguing with insurance companies over billing that could potentially evaporate overnight[1]. That alone is hundreds of billions of dollars, and that's just one example.
[1] https://www.americanprogress.org/article/excess-administrati...
https://en.wikipedia.org/wiki/Joe_Lieberman
> During debate on the Affordable Care Act (ACA), as the crucial 60th vote needed to pass the legislation, his opposition to the public health insurance option was critical to its removal from the resulting bill signed by President Barack Obama.
https://www.commonwealthfund.org/publications/newsletter-art...
It wont. Instead, insurance companies will deploy AI to defend. You will have same industry, with more convoluted rules and more tech.