How is your scenario more realistic than mine? I’m p. sure Henry Ford was right.
Because it reflects actual human behavior rather than self serving theory or urban legends. Putting aside things like demand inelasticity, lowering prices induces sales and reduces inventory but only if it can be done profitably. Note that much of this began after the Democrats raised the minimum wage after 2006. Government intereference by recklessly expanding credit, raising wages above market rates, destroying savings with inflation, and subsidizing poorly run businesses does noting but destroy an economy.