We'd be losing access to food, shelter, insurance, purpose. I can't blame people for at least telling themselves some coping story.
It's going to be absolutely ruinous for many people. So what else should they do, admit they're fucked? I know we like to always be cold rational engineers on this forum, but shit looks pretty bleak in the short term if this goal of automating everyone's work comes true and there are basically zero social safety nets to deal with it.
I live abroad and my visa is tied to my job, so not only would losing my job be ruinous financially, it will likely mean deportation too as there will be no other job for me to turn to for renewal.