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Why bother running a factory to produce things simply to give away to people who can't give you anything in return?
Automation doesn't occur unless labor costs are higher than the cost of automating away that job
FTFY. Lots of things can be automated that would pay a human only minimum wage, but it's even cheaper for a machine to do it.
Just because automation is happening doesn't mean people are paid well. Cost of automation goes down all the time.