I bet you’re still wondering how exactly can this be consider wealth creation? Well if the average person including the poor is now capable of purchasing a car then everyone’s standard of living rises. Ownership of a car increases efficiency for car owners or family owners of a car. What used to possibly take hours to days just to haul goods or travel great distances can now be done in only a matter of minutes to hours. In other words, more leisure time is created.
For example, if life before automobiles took me several days for me to travel my goods from one state to another state, it means my productivity takes at least several days to complete. However, if automobiles took only half the time for my goods to reach its destination, my productivity is now twice as fast. If productivity increases, more goods can be supplied into the market and if more goods are supplied to the market, prices of those goods begins to fall. Finally, a fall in prices can then lead to an increase of demand because more consumers (even the poor) can probably now afford it.
This is the difference between developed countries and non-developed countries. Productivity in developed countries is much higher than non-developed countries which results in a much higher and better standard of living. However, if productivity falls or even stops--while everything else such as demand remains the same--in developed countries then standard of living aka wealth creation also falls. However, many people do not realize that productivity is essential to wealth creation, without an increase of productivity, prices can never fall (unless demand falls) and if prices never fall then the overall standard of living will not rise.
However, there's one last thing to note. In the last forty years productivity has gone up 80% but wages has remain stagnant but this is due to the vast destruction of our dollar. Back in the 1970's our dollar had the equivalent buying power of 20 cents compared to the buying power of a dollar back in 1900. Ten years later the dollar's buying power dropped down to just 10 cents. Basically in a matter of one decade the dollar lost 50% of its purchasing power and over the course of 100 years it has lost 96% of its total purchasing power and the scary thing is, If productivity was not rapidly increasing the dollar's purchasing power would had fell even more.