>Isn't there also a reverse contradiction? The higher wages are and the less exploitation is taking place, the less your capacity to invest in machines will be. You can't increase the ratio of fixed to variable capital by just reproducing the capital, and the extra investment has to come from surplus, which has to be invested disproportionately in fixed capital, which in itself decreases the rate of profit compared to a situation where you maintain the ratio.
No there is no contradiction, if you increase the wages of workers until there's nothing left for capitalists, the workers will then be able to divert surplus to their own institutions that can invest in improving the means of production on their behalf, with their class interests in mind. In this political configuration it's in the interests of workers to improve the means of production because that makes their lives easier as well as increase their standards of living. I would say that this is probably the society that is able to adopt technology faster than any other. Since working class interests now shape the configuration of technology, it would no longer look scary, because people experience improvements in their lives that would be attributable to technology, and hence it would likely increase the socially acceptable amount of resources and labour that could be dedicated to technical progress, and since you would not have to pay the luxury expenses of the super-rich, that would free up a considerable amount of labour and resources for pursuing more tech.
I'm not sure what the context here is, are we comparing this to the Chinese model ? Obviously the Chinese model is less optimal then what i described here, but it's still functional, it still works because the Chinese state is directing economic development and is negating capital strikes, and so on, so the reason why people support the Chinese model is because it's still a net-gain for the working class despite having bourgeois elements, that reduce efficiency with regards to technical progress. You know in a optimal world Jack Ma would be a administrator for the people's tech-sector.