The point was that in today's, investor driven, "MOAR PROFITS EVERY QUARTER" mantra companies rarely "pass on the savings" out of goodwill. Many companies, these days, don't even compete on price. Look at Wendy's, Burger King, McDonald's, and Arby's. They've all stopped competing on price - minimizing or altogether skirting the dollar menu. Secondly, even as automation has increased since the 30s, the price of goods and services hasn't gone down. As technology has made manufacturing cheaper than even, the price of my Levi's has only grown. As has the price of my car, the price of a drill, and even the price of nails. Indeed, you can't right blame the cost of labor...most of these things are made in countries that were either similar to a typical 1970s wage OR cheaper than that (with some countries paying literally pennies a day). EVEN in the places where products are made, the locals aren't exactly prospering. No one sane person says "Gee, I want to live like a sweatshop worker".
I wouldn't expect any company to lower prices simply because of automation. If history is any indicator, that price will continue to rise and the blame will be passed on as something like "inflation" despite it being cheaper/easier/safer/quicker to produce said item.