There are quite a few scandals with crematoriums, including a Colorado crematorium that was caught giving out cement instead of ashes in 2021. There absolutely are regulations and criminal charges for this sort of thing, but it doesn't mean it never happens.
The ashes from cremation are ground up bones. They should look quite different from wood ash.
When media and government talk about "the economy", they mean rich people's stock prices, not working people's ability to afford food and shelter.
Where do you think all that extra money we're paying to live is going? To "the economy" of course! Rich donors to politicians are doing better than ever, so the system is working as intended.
They probably think it's cheaper to hire new workers and push old ones out.