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Yes, but this time the automation (AI) can immediately displace humans in the newly created, "more productive form of work" jobs too. Recursively.

Could you describe what you imagine an end state to look like? If you could, please be quite specific. How do people go about their days?

"There is no good answer to that" is precisely my concern.

You could speculate though. Presumably you're detail oriented enough to dig in.