In such an economy there's no incentive to work on further automation. In particular if there's a part of world where profits aren't distributed evenly - the innovation and manufacturing will move there.
A tiny group might try to live in it, but more would see seasonal jobs as enough. As automation improves in general people would work less over their lifetime. Critically this would likely slow down the economy in the short term, but the constant minor labor shortage would presumably push for ever more automation to offset this.
Unfortunately, it needs to be a pay go system based on a fixed economic percentage to really work. But, assuming it was the general population would suddenly have a huge incentive to promote automation and economic growth.
That said, labor has been cheaper outside the US for decades, yet manufacturing is still 2+ Trillion dollars per year in the US. In part it’s because you can’t simply move farms, oil wells, or forests etc. But, business friendly regulations, educated workers, efficient transportation, etc are also huge contributors.
Read about industrialisation of United States and history of tarrifs. US had plenty of them when the British Empire was the industrial powerhouse.
And no need if the work on further automation is automated.
What's the incentive for millions of people working for free on open source projects?