Ah so you figured it out.
That is what the masses miss. Deflation affects the working class to a greater degree than anyone else. So even if prices from down, they do not help since people are out of work.
When there are other jobs to roll into, then fine. Those workers at the video rental store were able to move to other things.
But what happens when, say, driving and coding jobs are mostly eliminated. Throw in customer service and we can see how AI is going to have a huge impact.