The fallacy claims that the number of jobs is a zero-sum game. I'm not saying this at all. While more jobs will be created, because automation is happening at such an exponential rate, there won't be enough jobs replaced.
I have feeling when we do have AI, many of these economic principals will need to be re-written.
More from this article:
"Whereas some argue that immigrants displace domestic workers, others believe this to be a fallacy, arguing that such a view relies on a belief that the number of jobs in the economy is fixed, whereas in reality immigration increases the size of the economy, thus creating more jobs"
Immigration may increase the size of the economy, but if they are hired at let's say 30% of an American working at the same rate, it essentially dilutes the market. Americans now have to compete with someone making much less than them, which will mean a huge pay cut.
With AI, it will mean competing with algorithms/hardware that can probably be purchased for even less than the cost of a worker.
The end game for this will be a class of people owning all of this AI hardware, the poor, and a much smaller middle class of people in-between that have the skills to work on the AI hardware.
What happens to all of the people that aren't educated or don't have the skills in this new economy when all of the jobs they could do to make money have been replaced by AI?