Think about it. Say a manufacturer comes up with an innovative way to cut $2,000 worth of labor from manufacture of a particular model. They can choose to pocket that $2,000 or sell the car for $2,000 less. Very, very few automobiles are built with processes only applicable to that particular make or model, so it's a guarantee that their competitors will be using the same innovation or an equivalent. This is the beauty of the free market - even if the manufacturer chooses to pocket the whole $2,000 they will quickly be forced to give it back because of the free market, as a competitor will take advantage to be more competitive and thus capture more market share (and therefore ultimately more profit.) Compare that to a socialistic or communist system with the efficiency of one government manufacturer. That innovation probably never gets implemented since there is no profit motive; nothing particularly good happens if it works out, but something bad might happen if the innovation doesn't pan out.
Let's track our two options separately. I'll start with the "evil" option - the manufacturer pockets the $2,000 per car. Even the 0.1% eventually get tired of swimming in cash (especially cash that us plebs have touched - we're so common.) Soon, that extra profit will be disbursed. It might be in executive bonuses, stockholder dividends, improved cash holdings (i.e. banked), or invested in new ventures, equipment, or labor. Obviously the investment will be designed to maximize future profit, market share, or market diversity, all good things. But eventually all that $2,000 goes back into the economy. Maybe it gets spent immediately; maybe it gets banked at some level. The part that is banked is now available to be loaned out so that other people can afford to start businesses, buy cars or homes or tits (seriously, you can buy breast implants on credit), go to school, etc. All that drives economic activity and creates jobs. On the other hand, if the car's price drops, then consumers have more cash left and/or have to take less out of savings. If the former, they can bank the difference (see above) or buy something.
But in either case, that innovation allows us to create and have more wealth with the same amount of labor. That is exactly how we progressed from subsistence farming to today's wealthy Western civilization. Even compared to our parents and grandparents, today we have and consume a great deal more wealth. This is directly because of innovation, not government regulation and taxation.
Not everything the private market does is evil, and not everything good comes from government, dude.