I think this will result in classic Jevons paradox: https://en.wikipedia.org/wiki/Jevons_paradox . As the price of writing any individual function/feature goes down, the demand for software will go up exponentially. Think of how many smallish projects are just never started these days because "software engineers are too expensive".
I don't think software engineers will get much cheaper, they'll just do a lot more.
I'm guessing low expertise programmers whose main contribution was googling stackoverflow will get less valuable, while high expertise programmers with real design skill will become even more valuable.
Googling Stackoverflow itself can sometimes be a high expertise skill, simply because sometimes you need a fairly good understanding of your issue to figure out what to search for. A recent example: we had an nginx proxy set up to cache API POST requests (don't worry - they were idempotent, but too big for a query string), and nginx sometimes returned the wrong response. I'm pretty sure I found most of the explanation on Stackoverflow, but I didn't find a question that directly addressed the issue, so Googling was a challenge. You can keep your job finding answers on Stackoverflow of you are good at it.
unfortunately companies don't make interviewing for real design skills a priority. you'll get weeded out because you forgot how to do topographical sort
Certainly but the higher expertise isn't a requirement for most dev jobs I would argue; If you are developing custom algorithm and advanced data structure, you are probably in the fringe of what the dev world do.
Otherwise I am struggling explaining why there is such a great demand for devs that short courses (3-6 months) are successful, the same courses that fail at teaching the fundamental of computing.
Inflation and productivity might be correlated but neither is a function of the other. Given any hypothetical world where increased productivity leads to inflation, there's a corresponding world equal in all respects except that the money supply shrinks enough to offset that inflation.
I don't think software engineers will get much cheaper, they'll just do a lot more.