Does anyone really think that the economics will still favor automation, if the economy sheds 50% of all jobs? It would require an act of economic cupidity for which there is no precedent.
Obviously, if there is 50% unemployment and the corresponding fall in wages, any idiot, who invests much in automation of something cheap labor could do would go bankrupt, pushed out by the smart capitalist hiring human beings.
Firstly, this scenario with abundant cheap labour only applies with a completely free labour market, unions (and yes, they will still have
some bargaining power in this scenario ) and/or politically established minimum wages will keep wages up. There will also be a pressure for nationalization of production, if wages are squeezed down to a very low level - people don't react well to their standard of living being eroded.
Secondly, and more importantly, depending on human workers is problematic. They get sick, they strike, they complain, they miss work or show up with a hangover and are generally unreliable when it comes to keeping up quality. Machines and robots can break down, but are on average far more dependable and reliable. So switching to machines or industrial robots gives great advantages to producers.
