The analogy is itself a fallacy. The jobs that were displaced were not those of horses, but of horse breeders, trainers, keepers and drivers. The horses in this story were not the laborers but the tools. Those people, unlike horses, could retrain to do a different kind of job which was in-demand. Horse traders could become car salesmen. Horse drivers could become car drivers. The replacement of horses by cars led to an increase in jobs, not a decrease.