There are opposing trends in this. First, that like many tools the capable individual can be made much more effective (eg 2x->10x), which simply replaces some workers, and last occurred during the great depression. Second, that the tools become commoditized to the point where they are readily available from many suppliers at reasonable costs, which happened with calculators, word processors, and office automation. This along with a growing population, global trade, and rising demand led to the 80s-2k boom.

If the product is not commoditized, then capital will absorb all the increased labor efficiency, while labor (and consumption) are sacrificed on the altar of profits.

I suspect your assumption is more likely. Voltaire's critique of 'the best of all possible worlds' and man's place in creating meaning and happiness, provides more than one option.