This is a good point. Technology replaces labor with capital. I remember reading controversy over the stimulus program, that hundreds of thousands of dollars were spent for every job created. Those people would have been much better off if the money went directly to them, instead of indirectly through jobs programs. But that's not politically popular (with the right.)
Alternatively the government could subsidize wages. Agree to pay x% of the wages for certain industries. Which is basically what we already do extensively with tax breaks for companies that create jobs. But that's also not politically popular (with the left.)
As automation replaces more and more of the unskilled workforce, we should just accept it and adopt a basic income.
"As automation replaces more and more of the unskilled workforce, we should just accept it and adopt a basic income."
Maybe. There are still vast pools of unskilled jobs that exist globally. They're vanishing in the US in no small part because our industries are forced to compete with business concerns that can take advantage of what equates to slave labor in less developed parts of the world.
Be careful, industry subsidies can violate WTO rules and get export markets closed off. America has treaties with lots of countries promising not to do that. Those other countries also promise not to do that. If America violates it, their trading partners will too and the global economy will be hurt, including America.
