The only thing that ever makes the human condition better in the long run is increased productivity. If luddites were left in charge we'd all be living like the 1800s.
They didn't want retraining as mill workers. It was much lower paid work. They wanted their old jobs which didn't exist anymore. I agree that the government should absolutely take care of people who lose the capitalism lottery.
I think there is a presumption that there is a caring government to take away the duties of maintaining one's livelihood, a livelihood formulated without the modern, post-Revolution (the French one) impulses that we live with today. Current western governments (particularly the social democratic Europe) are in part the result of effects of capitalism, which in the course of modern history, we can't escape so easily (I am sort of alluding to the work of Mark Fisher here.)