I hear this logic about low prices being good for poor people all the time, and I can never understand it. If prices are low because labor is cheap, then it seems that the employer/merchant will always make out. It's simple math. Try applying your logic to every wage earner in the world. If a price is reduced by 10% because wages are reduces by 20%, then the employee loses 10%. Sure they can buy everything they need 10% cheaper, but they lost 20% of their pay check. This only helps two types of consumers, investors and people on welfare.
You're assuming that prices are lower because somebody lowered the wages of his employees. Generally speaking, prices go lower because someone finds a way to optimize his supply chain, or a more efficient way to build a product, or by investing in automation. Lowering your prices by giving your employees a pay cut just makes the employees look for new jobs.
