Technology creates massive consumer surplus. I'm not sure if you don't know what that means, but it means exactly the opposite of what you said. For example: A

Technology creates massive consumer surplus. I'm not sure if you don't know what that means, but it means exactly the opposite of what you said. For example: Apple sells an iPhone for about $750. This phone contains the equivalent of (roughly) $3,000 of disparate technology from the 1990s, including a cell phone, camera, tape recorder, etc. Not only does it contain all of that for less money, all of that is better quality than what was available for that $3,000 back in the 1990s. That is deflation and consumer surplus in action. The consumer can spend a fraction of what they would've in 1990 for a better product. Another example: Apps on the App Store. Everyone expects everything for free because there is so much competition enabled by technology. The marginal cost is roughly zero, so most apps are free. If most of the gains were being kept by the producer, apps would cost a lot of money.