[Carth]

More automation leads to fewer workers
Fewer workers leads to more unemployment
More unemployment leads to less wealth
Less wealth leads to decreased spending
Decreased spending leads to fewer goods bought
Fewer goods bought leads to lower production
Lower production leads to less profit
less profit leads to more automation

Very simplistic I know, but if people cannot afford the items/services you provide . . then the market is open for cheap lower quality (probably from abroad)