> I disagree. Humans tend to create new market segments in response to this problem.
You can disagree if you like, but you're relying on the past to make your presumption that humans will just create more markets; the future of automation isn't like the past, future automation will include AI and is already doing so. AI changes the game, the future is not like the past, humans won't just do something else. Labor based economies must end at some point, there simply won't be enough demand for labor to keep an economy going.
> Do you seriously think automation means less human labor is needed?
If you don't, you're not paying attention to the world.
> Automation means less labor is needed to produce certain kinds of goods. We can always find things for people to do.
Absolutely wrong; the automation that is coming will leave little for people to do as it'll always be cheaper to have a machine do it and an intelligent machine will be able to do anything a human can. All goods, all services, not just "certain kinds" will be done by machines; your doctor will be a machine, your housekeeper, masseuse, waitress, all of them, robots.
The idea that there's always going to be some way to sell your own labor is antiquated and wrong; basic income is meant as a solution to the collapse of labor markets that is coming from our continued increases in production via automation, and it is coming, and no, there won't be some other job you can do... machines will do all the jobs. Humans will leisure or find other means to feel productive but goods and services will not be distributed by means of a labor based economy.
The labor based economies of the world are on their deathbeds; we're currently calling this structural unemployment due to globalization, it's all the same problem, the future isn't based on human labor or labor based economies.