Edit: the main assumption EY is making in this article seems to be here:
Since it should take advanced general AI to automate away most or all humanly possible labor
and I don’t think that’s true. I think that a majority of labor done today, either physical or intellectual, is basically a series of routine or repeatable tasks, and I think that a big chunk of it could be done by either narrow AI software or robotics or internet-based logistics.
He’s referring to humanly possible labor, not human labor done today.
If automation makes it possible to produce a hot dog using 1 unit of labor instead, conventional economics says that some people should shift from making hot dogs to buns, and the new equilibrium should be 15 hot dogs in 15 buns.
He’s referring to humanly possible labor, not human labor done today.