First of all, look at the technology sector to see that most of your claims about a consistently deflationary market are flat out wrong in real world practice. Costs are constantly falling and products are constantly improving, yet we don't see any of the horrors you predict. Instead, the result is more people have access to technology than ever before and the explosion in standard of living AROUND THE WORLD has been enormous. Even though devices get cheaper and quickly become obsolete, people still gladly throw their money at both consuming goods and investing in capital. Strange how the most successful market today is extremely deflationary, huh?
I would also argue that a deflationary economy would most likely have interest rates set by the market - the supply vs demand of real money - and just some board of elites from the ruling class. In this case, you are absolutely crazy if you think people won't invest. If people start hording their money under their mattresses instead of investing, interest rates will naturally go up to spur investment. The reality is people are greedy and most certainly will still invest, just with a higher effective ROI - the horror. Furthermore, I would argue the currently inflationary market makes every Tom, Dick, and Harry trying to save for their retirement a speculator - if you want to accumulate wealth today, you have to 'play the markets' in addition to whatever your day job is. If a working stiff can just throw his money under his mattress and not have to worry about it losing value or what the markets are doing, that's excellent and a good thing. Everyone like to bitch and moan about speculators being horrible yet fail to realize inflation makes speculators out of the bulk middle class.
You're also confusing money and wealth. Just because you have less money doesn't mean you have less wealth. This is hard to understand for someone who has lived their entire lives in an inflationary market. The real goal of a capitalist market is to increase wealth - AKA standard of living - the size of the number in your bank account is irrelevant. Money is just an IOU to consume some real good or service.
Wages aren't set by how much an employer can afford to pay - you should be embarrassed for even making the suggestion - they are set by supply and demand like any other price. Unlike other capital goods, you can't just manufacture more people, instead you have to enable them be able to produce more with less time and effort if you want to increase your wealth. Price deflation actually comes from improving production efficiency and increasing worker productivity through capital investment, thus enabling businesses to actually be able to afford higher wages.
And don't give me the nonsense about automation replacing jobs - automation has always resulted in greater total employment as the demand for goods is driven up by their now reduced scarcity, or the demand for some new good is driven by the extra money left in everyone's pockets because of the now cheaper original good. Greater productivity also means people need to work less to maintain a given standard of living reducing the supply of labor and further driving up the price.
Forget all of that - the greatest problem with inflation is that it is not just a hidden tax, but it is what enables the warfare state. The state's ability to just inflate the money supply as it sees fit is what allows countries like the US to pay for its endless mass murder. They are effectively leaching productivity from the market so instead of producing food, housing, and gadgets for us plebs, they're STEALING capital to manufacture bombs and guns to SLAUGHTER brown people on the other side of the world. When people see their wealth being taken by the war machine, war becomes incredibly unpopular as it was in the US before the world wars - inflation elegantly hides that making war seem clean and easy. This is just fascism with a different name - you and your other Keynesian ilk are no-shit-there-I-was Nazis and the blood is on your hands. I'm sorry to break congeniality, but seriously, fuck you, go die.