Efficiency and changes in technology bring greater wealth, not less. Where are all those linotype operators and typists these days? Is our GDP higher or lower than 40 years ago?
Your model only worked until the level of replacement in "efficiency" brought the consuming class to their knees.
I reiterate and will continue to reiterate, macro-economics dictates that you need customers with money in order sell stuff. That trumps any of your micro-economic theories. And we find ourselves precisely at that point today.
When Japan had to idle its robot fleet, it was because worldwide people stopped buying gadgets because worldwide people aren't making enough money for extras. When things get bad, the common man whittles it down like any good company. He gets "efficient" with his spending, just like any good company. He stops buying things until the economic climate gets better.
Check, and, I believe, checkmate... Only, we all lose in the game of malignant/blind capitalism....apathic/blind
micro economics...