This is where common sense fails us humans. On a micro scale it’s correct but on a macro scale it’s called the paradox of thrift. Without demand there are no jobs. Higher wages lead to more demand. Businesses don’t invest without demand; they simply don’t. The whole supply side bias of neoliberalism means we have huge capacity for production that is idle and pretty much waiting for demand that isn’t going to come unless there’s a war or another massive Keynesian stimulus of a huge middle class again. The whole system is waiting for India or China or a war to pick up the demand slack. Meanwhile we have a finite planet with finite resources struggling to cope with the smartest yet most destructive species ever to have lived.