> Where would governments find the money to expand safety nets by 2-3 orders of magnitude, while losing most income tax inflows?
Well, it would start by not tax-favoring the (capital) income that remains and would have to have grown massively relatively to the overall economy for that to have occurred.
(In fact, it could start by doing that now, and the resulting tax burden shift would reduce the artificial tax incentive to shift from labor intensive to capital intensive production methods, which would, among other things, buy more time to deal with the broader transition if it is actually going to happen.)
Well, it would start by not tax-favoring the (capital) income that remains and would have to have grown massively relatively to the overall economy for that to have occurred.
(In fact, it could start by doing that now, and the resulting tax burden shift would reduce the artificial tax incentive to shift from labor intensive to capital intensive production methods, which would, among other things, buy more time to deal with the broader transition if it is actually going to happen.)