alt Hacker NewsThe value of labor i.e. wages depend on labor demand (the marginal product of labor) and bargaining power, not output per worker. If AI is a substitute for many tasks, the marginal value of an additional worker, and what a company is willing to pay for their work can fall even if each remaining worker is more productive.
What you're forecasting is a scenario where total output has substantially increased but no one's hiring or able to start their own business. Instant massive recession is by no means a "sure bet" with technological improvements, especially those that make more kinds of work possible than before.