Industrialization actually helped the middle class insofar as you needed "skilled workers" to work the industrial equipment, make decisions, and process. The fact that production had scaled in a world of scarcity meant that your worker had greater leverage. They often knew each other as well, went to the same schools, etc which meant less info asymmetry as to their worth/value. It moves the value to something that takes time, skill and sometimes luck to achieve that being skills and experience. This was hard to replicate (e.g. our school, college, university systems), required significant training and created "pets not cattle" with hard to get skills meaning the new skilled middle class could rise and exercise their new found negotiating power.

Somewhat unprecedented in human history. All because intelligence had scarcity. AI changes that.

AI is the real dream of the capital classes. It makes intelligence cheap potentially undoing the very thing that gave birth to the last century's middle class. In the long term, given current trends, I wouldn't be surprised if these AI technologies revert us back to most of human history -> where the world is very unequal, meritocracy dies and most of us are trying to just exist/survive whilst the capital holders have abundance. It explains the large valuations as well of AI/Tech lately and the weird deals going on; this isn't a game of economics anymore; its an arms race of power in the new world structure. I suspect to these people no amount of money is enough; if you win you win for the next era of humanity.