If Bill Bryson is to be trusted, the loom actually replaced a massive amount of labor. Prior to invention of labor-savings devices, Britain made 32x less cotton fibre. The inventions in this space put tens of thousands out of work, in what was already a difficult job market due to automation. I’m not sure your first paragraph makes sense.

People were dirt cheap, but machines were vastly more productive (and some inventions were stolen so that no royalties had to be paid).