[refurb]

Because technology also leads to better "things" that cost more but overall provide more value for the money.

Think of it this way: if you wanted to replicate the average life of someone who lives in the 1950's, it would be cheaper than today (I know housing kinda screws that up). No internet, a basic car without all the electronics and safety gear, no computer, smaller house, rarely flying anywhere, etc.

The trade off with improved productivity is this: you can either work less and make the same amount or you can work the same amount and make more. Most people choose the later.