First of all, common people are not living paycheck to paycheck in the sense that they're at risk of not having money[0]. This is corporate content marketing that has entered the collective memory of people, not anything close to reality.

Secondarily, reducing the cost of making a thing doesn't always mean you get less of a thing. For me, certainly, what happened is that I write way more software than I originally did. When we built compilers, the amount of human engineering effort required to do things plunged, but the amount of software engineering jobs didn't go down.

This is as bad as models will ever be. That part is true. And it's entirely possible we go foom. But it's also possible we don't, and then it depends on where the asymptote lands.

0: https://www.slowboring.com/p/this-economic-myth-needs-to-go-...

Respectfully, that is truly ignorant. The vast majority of humans do not have any savings and would be in big trouble if regular income ceased. No paycheck no food. It’s wage slavery and it’s pervasive.