As long as people have some use in productivity, and need to work to eat (limiting price elasticity of labor supply on the low end), technology won't produce lo

As long as people have some use in productivity, and need to work to eat (limiting price elasticity of labor supply on the low end), technology won't produce long-lasting unemployment, just, under ceteris paribus assumptions, long-lasting reductions in the ratio between the market-clearing price for the average unit of labor and the value of the total output of the economy. Technological change can be classified as labor-augmenting, capital-augmenting and labor-neutral change. You seem to be claiming that all technological change is capital-augmenting. There's been quite a bit of research in this area, and your claim is overwhelmingly refuted... in fact, Daron Acemoglu has multiple research projects purporting to show that most technological change is labor-augmenting. A summary is available at http://economics.mit.edu/files/967 http://economics.mit.edu/files/967