As Jim Cramer spends the week in San Francisco at this year's Dreamforce technology conference, he sensed an undercurrent in every CEO's sales pitch. It is one that encourages everything to be faster, better and cheaper. They want more, for less.
"But the word these tech chieftains don't talk about is 'lower', as in hiring lower numbers of lower-wage workers to do the remaining jobs that aren't wiped out by the automation that they are promoting," the "Mad Money" host said.
Cramer realized that the innovations of these booming technology companies are perhaps the main reason why the Fed chose to leave rates unchanged in the U.S. on Thursday, despite strong employment numbers.
The innovation that Cramer has seen in the U.S. is all about companies paying less money to whatever employees are left over, since new technology has managed to wipe out middle management and employees that support it.
And yes, there is a bidding war out there for the highest level of talent. But Cramer said that is only because there is a shortage of code writers, computer scientists and computer engineers. Outside of these positions there is an excess of people looking for decent, higher wage jobs.
One example of this can be seen in the business model of Salesforce, which has such a powerful platform that it allows customers to run their entire business from a cellphone, thus eliminating the need for people. It is innovations such as this that allow companies like Salesforce to focus on revenue producers, not the expensive support staff.
"If you don't produce revenue, then you are surplus, dead wood to be chopped so management can raise productivity and margins," Cramer said. (Tweet This)
Even companies like Airbnb have found a way to create wealth for those who want to make money in their own living spaces, without the expense of hospitality staff in the hotel industry.
Or how about the fact that oil production has not gone down, despite lower oil prices? According to Cramer, that is all about technology. The oil patch has figured out ways to drill and produce for much less money than two years ago without the highest paid people in the process.
Read more from Mad Money with Jim Cramer
So, what has been done with all of the people with high-paying jobs destroyed by technology?
They huddle together to beg for the low-paying part-time jobs that algorithms dictate and assign. Cramer thinks technology is now building a society without people, and it's inherently deflationary.
"That is why there is no reason to raise rates. Technology is doing the Federal Reserve's job for them," Cramer said. (Tweet This)