The problem with technology being deflationary is that pushes revenues of companies down. That means they have less money to play with which means they have to cut costs. Ultimately, that means less jobs with people being laid off.

If you have no job, what is the value of your labor. When this happens on an industry wide or economy wide scale, you can see a problem.

Few have seen what a truly deflationary environment looks like. Take you thinking and apply it to the Great Depression, the last truly deflationary period in the West. That was not a good period for people.

Defaults increase. Companies go out of business. People lose their homes.