Companies become more dependent on automation in order to increase efficiency. In the near-term this leads to higher profits. However, because automation reduces overhead, competition will result in lower prices. The end result is that increased profits are only temporary, ultimately the main result is merely cheaper goods. And cheaper goods mean increased amounts of discretionary income. That money ultimately goes elsewhere, creating new jobs that didn't exist before or causing growth for old jobs that used to be niche.

Yes, I can imagine a future where most of the menial and factory jobs are performed by robots. Just as I can imagine a present where the majority of the population isn't farmers, or where "computers" are devices rather than people, or a present without elevator operators, switchboard operators, lamp lighters, or milkmen.