You might think goods are cheap but their cost to you bears no reality to their production cost.
Most processes are automated now and the labour component isn’t that big a factor in a lot of products now.
When I started in my current job nearly everything from our major supplier was made in Australia or other western countries (yes I’ve been there that long!). Progressively more and more stuff has been moved over to being made in China or India and funnily enough the prices that we pay haven’t gone down at all, in fact they continue to go up with “inflation”.
Before production started moving to China and India I saw invoices accidentally left on goods that had been delivered to us made in Europe and the markup to us was on the order of three to four times their cost and then we put our modest mark up on it! Now most of their stuff is made in China or India so the markup is probably five to six times or more what we pay for it now.
It was always well within their scope to keep production in western countries but they want to make even more exorbitant profits than they were making before!
The products produced today many of them are orders of magnitude more complex and require complex manufacturing processes this is why there is so much automation - and automation isn't free, instead of a bloke with a hammer you have years of development, engineers and technicians to look after these machines now - simply because the bloke with the hammer is completely incapable of the same work the machine can do (TLDR automation isn't free labour and does actually cost money).
Have a think about what a computer for example cost you in let's say 1990. Now look at an infinitely more complex computer and what it's worth today. People under think just how much technology is in the devices they use day to day. They also conveniently forget that a computer in the 90's was worth thousands and the equivalent today costs less. Back then your dollar didn't go anywhere near as far.
Televisions is another, a television today is cheaper than one in the 90's yet is orders of magnitude better and made from more advanced techniques and componentry. The factories that make these televisions are a marvel of modern manufacturing whereas the old factory was a bunch of people doing stuff by hand on simple production lines.
Consumer products have not gone up with inflation, they have become markedly cheaper as the cost to produce them has gone down yet they are orders of magnitude better, more complex and require complex manufacturing techniques that just didn't exist in days of yore.
The labour component is greatly exaggerated as part of the total cost, however in our economy labour is so ludicrously over-priced as a percentage of a product that cuts a cent here and there and also due to the much higher rate of consumption of the very goods we're making. Back in ye olde times people didn't churn through pocket computers (yes phones) at the rate they do now (a great example of segments that didn't even exist), or teles, white goods, cars or pretty much anything.
There are many factors at play but the China factor has driven much higher consumption of goods than ever before.