Competition is the reason prices will come down. Companies charge as much as they can get away with. To gain an edge, they lower prices.
In the instances where the company is able to avoid lowering their prices, they will, as you say “pass(sic) on those profits to their employees via pay increases and bonuses........”. That is also a good thing. More $$ in the economy and out of Washington.
No matter how you slice it, it works out better.
Nice if you're working but not if you're retired and on fixed income..........