If someone's work is worth 100 units/time period but society spends 200 u/t to make them feel good about themselves, then that's a net loss. And this isn't just an academic point; a society that eats itself from inside like this can't last and will be replaced by something considerably less warm and fluffy.

You're assuming that by providing a "place in society" society is indeed trying to pull the wool over citizens' eyes. I think it's possible for a society to legitimately find good places for everybody to work without it being haberdashery. Just automate all of the pointless, frivolous tasks, and find more meaningful jobs for everybody.

The post I was replying to made the point that unskilled jobs should not be automated, but given to the "less able" to make them feel good about themselves.