I'm not an economist, but my understanding of the massive social impact observed in the Industrial Revolution was not so much that it happened at all, but rather the rapidity with which it happened. We ultimately reached a new, stable equilibrium, but until various social forces and trends, government policy, etc. caught up, there was massive disruption.
People like Jeremy Howard believe that we are in for a similar wave of disruption. I have no doubt that there is a new, stable equilibrium which we _could_ eventually reach, but if the change is so sudden and the shock strong enough, perhaps there could be permanent or semi-permanent negative consequences before the new equilibrium is reached.
I think you're right, that does seem like a possibility. It seems unlikely to me that our wage-paying jobs will be phased out by automation that rapidly, especially if you consider the whole global economy. Of course, I could be completely wrong -- I guess a true Singularity could invalidate almost all labor in a matter of years or even months, depending on what form the AI takes and what it invents.
People like Jeremy Howard believe that we are in for a similar wave of disruption. I have no doubt that there is a new, stable equilibrium which we _could_ eventually reach, but if the change is so sudden and the shock strong enough, perhaps there could be permanent or semi-permanent negative consequences before the new equilibrium is reached.