> But remember, this same equation applies to the employer. I don't think it does. > So they can't tell the market "hey we can now produce this same product 5

> But remember, this same equation applies to the employer. I don't think it does. > So they can't tell the market "hey we can now produce this same product 5x more cheaply but pretty please will you keep paying the same while we reduce our expenses by 5x?" Why would they advertise their internal efficiency gains? And even if they can't hide it, why would it force them to lower their prices? It doesn't affect the supply/demand equation. It just makes them more profitable.