> If AI can do everything and gets everyone out of jobs

Not everything - Many things.

Not everyone - Many ones.

The people who cannot compete fade out, and the ones that are left reap the benefit of the machines. Just like one farmer reaps the benefit of a tractor that replaced 20 laborers.

The earth population keeps reducing until it is kinda a vacation resort for 100 billionaires + others who work for them + machines.

Then some politician who promises to be a voice for the people uses force/army to kick the billionaires out, redistribute the wealth, and then the population increases and the cycle continues.

This has been happening and will continue to happen until the heat death of the universe. (and then repeat after it gets created again).