I think what you are saying is automation is harmful when there is no safety net. I tend to agree. I think the right solution is to set up safety net. In particular, I don't think stopping automation is the right solution.
The question is, who is going to pay for that safety net, and is it really still a "safety net" when a majority of the citizens have to rely on it?
It could be argued that since automation drives the need for these arrangements, it ought to be taxed accordingly to pay for the measures that mitigate them.