You forgot the last part about now no one having money anymore to buy the companies products, so you go into a deflationary spiral. To solve that you'd want to

You forgot the last part about now no one having money anymore to buy the companies products, so you go into a deflationary spiral. To solve that you'd want to increase wages by e.g. improving workers rights, giving them mandatory pensions etc. But that is scary: They might get too much power and revolt! This works for China currently for a while, because they are exporting more and more. They have realized that they need to grow internal consumption, but are not managing to grow that sufficiently.