The simple fact remains - businesses exist to make money. Period. Not to make sure everyone in their home town is employed. If they can do both, wonderful. But if they can make more money paying someone less to do the same job, they'll do it. It's been like that since the beginning of time. Will everyone adapt? Of course not. There were a lot of people who lost jobs and never recovered when horse and buggies were replaced with cars. When ships were replaced with planes. When paper was replaced with computers. Losing jobs because it's cheaper and/or easier to do it another way isn't ANYTHING new.
The job market says what you should get paid. If a job used to pay $6 an hour has more openings than people, then of course that payscale will increase. Witness the medical profession. If a job used to pay $50 an hour has more people than openings, then of course that payscale will decrease. Witness the IT profession. To keep paying people $X just because that's what they used to make or think they should make just doesn't make economic sense. Again, this isn't anything new - I studied it 20+ years ago in college and I suspect you studied it too - even longer ago.
I have taken a HUGE cut in pay over the last two years. A cut in pay that I bet 99% of the "employees" out there would be up in arms about. I have adapted. That's what people who will survive do
And I still haven't figured out why businesses are expected to pay for employee's health insurance, but that's another argument for another day.