The technology allows more room for profit by lessening the human input. In the early chapters of Das Kapital Marx describes the capitalist drive toward great productivity. It no longer hinges so much on "great factories" as on the ability of capital to command great amounts of productive activity. In other words, globalization has made it possible for many transnational monopolies and oligopolies to simply be a conduit between the financial community and networks of smaller business units, generally contracted for limited periods so that capital can withdraw from unprofitable or less than optimum profitability production units. In those industries where information technology or robots can be applied on a mass scale the capitalists employ "technological displacement" strategies -- replacing humans with machines -- smart machines, that is. Capitalists can get away with this for a while because population growth expands the supply of labor, and wages can be bid down in the marketplace. Shorter work time is an essential demand of labor, because it allows the working class to control the supply of labor. It makes the capitalists have to bid wages up!
As far as demand constraints produced by technical innovation and the resulting worker displacement, the capitalists can go only so far before meeting the subsistence needs of the population over rule the manipulations of the labor market. At that point capitalism goes into profound crisis, because it can no longer hold society together. We are now going headlong into such a crisis. The Russian economist Kondratiev saw this as the "winter" of a very long term business cycle.
THE INTERNET BOUNCED WHEN I WAS WRITING THIS, AND I LOST MY CONCLUSION. I'LL COME BACK TO THIS LATER.
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