This decline is a necessary aspect of Capitalism. Competition, for all it helps initially with forcing prices lower, ultimately comes at the cost of increased exploitation of the Working Class. As all value comes from labor, there is only so much you can immediately automate away to lower cost of production before you must further exploit your labor force to remain competitive.

Socialist markets, ie ones controlled by Worker Co-operatives, still face these issues, but delay them due to being of and for the workers themselves.

Only a non-market form of Socialism, such as Anarchism or Communism, can actually permanently solve these issues. Markets are a useful tool during Capitalism, but just as feudalism gave way to Capitalism, so too will Capitalism give way to a more equitable distribution of control.

Maybe we'll see planned communities pop up that pool resources and create their own "circular economy". Certain things are incredibly cheap today, e.g. learning how to do things. And technology can make certain basics needed to live very cheap. Food, water, energy, housing, education, safety, medical, community.

If you could e.g. buy some farmland and build a compact apartment block out of e.g. shipping containers (or something even cheaper) then you could produce your own food, have your own school (partially over internet), a doctor / medic, and have workshops to make and maintain whatever you need.

Maybe the "buy in" costs for each person could be pretty low, like 10-20k.

A kind of "democratization" of economy for the basic needs. The global economy is completely out of whack because nobody can compete with mass produced garbage and marketing, so our work is getting worth less and less and we're getting poorer.

It seems US tries to do Russian history in reverse