A system like that will eventually collapse in on itself. If you pay lower wages, you have less people buying your products and if you put machines in to do all the labor in making your products, you have to hope that someone else will take up the slack for you and hire the workers that you did not, so they can buy the products your machines make. Then your competitors do the same thing, because your products are cheaper than theirs. Eventually you will run out of a good pool of buyers for your product, because no one has a job. This unfortunately seems to be the direction this world is heading in.