This isn’t just about productivity of labor, it’s about productivity in terms of end result. That kind of or productivity is deflationary, not inflationary.

Eg a TV costs 10% of what it did 20 years ago. Fewer person-hours of work are involved in making one TV. Less of the average home budget goes to TVs than it used to, even while people are buying better tvs.

That’s a massive productivity increase in the lingo of economics.

You could replace TV with solar panels, cars, computers, etc. Less human involvement per good produced => productivity increase.