Buyers are anyone buying goods and services, from people who vote for politicians that promise lower taxes due to negotiating more labor hours per dollar, or someone going to Walmart and buying a $10 shirt from Bangladesh over a $20 US made shirt (made up numbers).
People who buy from McDonalds over the local burger place that is more that twice as expensive.
>How does any business not get outcompeted by a race to the bottom where people are always willing to perform/obtain the labor more cheaply?
They do get outcompeted, hence manufacturing and textile businesses moving to other parts of the world from US/UK/Europe. And people opting to shop at large businesses with economies of scale like Walmart and Aldi over mom and pop places.
>Why do the costs of goods get more expensive every year?
The cost of some goods gets more expensive. A lot of consumer goods went down in price for people in US/UK/Europe for many of the post WW2 decades. It is only recently that labor costs might have started pushing prices up in real terms.
