Jerry Pournelle used to write about "welfare islands" in his CoDominium stories. They'd dump all the surplus people into walled ghettos across the world. Slum housing was free as was the garbage food they'd receive, and the government gave them enough money to buy drugs keep them semi-sedate and mostly manageable. Any troublemakers would get shipped off-Earth to hellhole colonies to be used as cheap labour (i.e. worked to death on swamp-worlds and ice-planets). Even moreso than today anyone who wasn't part of the ruling class (or their direct servants/mercenaries/lapdogs) was well and truly fucked.
So there's the great question that will need to be addressed in the next fifty to one hundred years: what the hell do the elites do with all the people that are no longer needed because robots are doing all the dirty work? Hell on earth is coming sooner than anyone previously thought, M8.
