Whenever people see old systems still in production (say things that are over 30 years old) the assumption is that management refused to fund the replacement. But if you look at replacement projects so many of them are such dismal failures that's management's reluctance to engage in fixing stuff is understandable.
From the outside, decline always looks like a choice, because the exact form the decline takes was chosen. The issue is that all the choices are bad.
Some of this is inevitable as new products and services move from being high end to mass-market, and it’s perhaps a bit chicken-and-egg to determine whether we accept this because we most people never really cared about quality that much anyway or because we just learn to accept what we’re given.
But it feels like there could be a world where automation still reduces costs while still maintaining a high level of quality, even if it’s not quite as cheap as it is now.
But consider an example which can't be blamed on that. My city (Melbourne) has a big century-old tram network. The network used to cover the city, now it covers only the inner city because it hasn't ever been expanded. We can't expand it because it's too expensive. Why could we afford to cover the whole city a century ago when we were 10x poorer? With increasing density it should be even more affordable to build mass-transit.
Obviously people blame the latter example on declining state capacity, but I'm not sure state capacity is doing any worse than Google capacity or General Electric capacity.
Construction is not massively more efficient today compared to a century ago, while salaries have massively increased.