That is exactly how it works, unless there is a monopoly and no alternatives. You've forgotten all the people and communities benefiting from the lower prices, who (normally) vastly outnumber the factory workers. And the same factory workers benefit from the lower pricing in what they buy made by others too.
Yes the goal really is to improve productivity. If you want to do as much as possible locally with many people, then try subsistence farming. It has only been ~200 years since ~98% of people in the US worked in agriculture - now down to ~2%. Yet vastly more food is made and it is cheaper.
Trade and specialisation/productivity are what has driven prosperity and quality of life. It is very tempting to see all this as a zero sum game (ie the level stays the same and gains match losses). But in reality it is a rising tide lifting all boats (ie gains outpace losses).
There are temporary blips while change happens. To an individual life, that can be serious, and a humane caring society will address it through various means of support and opportunity. By far the stupidest way of providing support is requiring commercial enterprises to provide jobs and work to do that they don't require, increases their prices and helps their competitors, with no societal benefit. Note that this approach has been tried numerous times - it results in a stagnant economy, slow or negative prosperity, and doesn't really help.
Comments
That is exactly how it works, unless there is a monopoly and no alternatives. You've forgotten all the people and communities benefiting from the lower prices, who (normally) vastly outnumber the factory workers. And the same factory workers benefit from the lower pricing in what they buy made by others too.
Yes the goal really is to improve productivity. If you want to do as much as possible locally with many people, then try subsistence farming. It has only been ~200 years since ~98% of people in the US worked in agriculture - now down to ~2%. Yet vastly more food is made and it is cheaper.
Trade and specialisation/productivity are what has driven prosperity and quality of life. It is very tempting to see all this as a zero sum game (ie the level stays the same and gains match losses). But in reality it is a rising tide lifting all boats (ie gains outpace losses).
There are temporary blips while change happens. To an individual life, that can be serious, and a humane caring society will address it through various means of support and opportunity. By far the stupidest way of providing support is requiring commercial enterprises to provide jobs and work to do that they don't require, increases their prices and helps their competitors, with no societal benefit. Note that this approach has been tried numerous times - it results in a stagnant economy, slow or negative prosperity, and doesn't really help.