The flip side is that if companies are making less profit, there might be more consumer surplus, leading to more savings (which can also be reinvested in the economy) or a higher standard of living.
Yes, but the average person with savings isn't going to create wealth in any way that a business can with that money. Most especially if that money is "saved" in stocks or bonds. This might be better for people in the short term, but we are talking about sociatal progress not short term benefits.
But there's the obviously counterexamples of companies hoarding billions and not paying dividends because they don't know what to do with it.
