Sounds to me like people here are suggesting an exclusionary "basic income"?
I notice people are equating it to welfare and benefits that already exist, and that would make it exclusionary, as opposed to the universal implementation.
TL;DR of a massive post.
Let all lower-middle class citizens actually pay some form of tax instead of gaining benefits.
On what planet are you living where the lower middle class don't pay significant income tax on their inadequate salaries, and where they have access to significant benefits that they actually waste their time claiming?
In a 1st world country:
That is the last class you want to squeeze, especially after introducing a basic income. Who the fk would want to be part of that class? Not even the people below them lol They work long hours, in skilled jobs, for sht pay, and they don't get things for free. They merely subsist from one month to the next as it is, except that they actually have to work in order to do that.
Giving them a choice to continue to subsist while being given their 8 hours a day back and then punishing them if they instead choose to keep their shty job by increasing their taxes and taking away the few benefits they have makes the choice even easier.
In South Africa:
You would have to squeeze everyone above them as well, to a much higher degree, and you would still run out of money almost immediately.
As for your "people not willing to work low paying jobs will give rise to an automation revolution" idea, I would love an automation revolution, but I suspect the economy would crash before that happened given the scenario you are painting. People would be very willing to work after that, for much less, and automation would be put on the back burner even more so than it is now. I see the advances in automation primarily continuing to come from the below replacement level of birth rates and the ageing populations in countries that don't practice mass immigration. For them it's not about whether people are willing to work for so little, it's that they don't have people.