If the automation doesn't make things cheaper then how will all these people without jobs be able to afford the products created by this automation? How will this automation survive economically?
These problems are always resolved automatically and naturally by market forces.
aside:
Unemployment is an artificially created situation used by governments to keep the employment market competitive and wages low.
It's easy to solve n% unemployment if you want to - just make everyone work n% less and thus create n% more work.
Making things cheaper doesn't mean they will be sold for cheaper. Usually the difference becomes greater profit for companies. And next year's profit always needs to be more than today's profit, otherwise manager's lose their jobs.
E.g., automation has been added to the manufacture of cars for decades, has the cost of cars gone down over decades? No, the cost has gone up...and up...and up.
By your equation to solve 7% of unemployment we just need to make everyone work 7% less and thus create 7% more work. That math doesn't actually add up, want to try again? Explain to us how solving unemployment is so simple.
Because they want maximum profit. They want to pay their workers next to peanuts while charging more. The next natural step is to kick the workers and put machines that will not complain about getting a low wage or get sick and need healthcare, and keep charging to the same guaranteeing only the wealthy can afford it. Capitalism as we know it will eat itself out until exhaustion.