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Companies do not lower prices just because they can "afford" to, they only do so in response to market pressure. This is also why lowering corporate taxes *never* results in price drops or wage increases, but instead just leads to larger corporate profits and executive compensation.The more people able to produce items, lowers costs of said items.
In theory, overproduction could lead to oversupply, which would in fact lower prices. But corporations are smart, and generally know not to produce more than they can sell. Nevermind retailers understand not to stock more than they can sell off their shelves, for much the same reasons.
Supply side economics relies on businesses to not be ruthlessly capitalistic, hence why it *never* works. The only thing it's accomplished is raising stock prices (though enhanced corporate profits) and drastically raising the wealth gap.