You're describing the Tendency of the Rate of Profit to Fall[1], which, I'm sorry, is a Marxist idea so it's automatically wrong.
1. https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit...
You're describing the Tendency of the Rate of Profit to Fall[1], which, I'm sorry, is a Marxist idea so it's automatically wrong.
1. https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit...
The very page you linked states that it's recognised as an empirical phenomenon by Adam Smith, who predates Marx.