Another fundamental issue is that business has never been structured for high wage elasticity. When the market clearing price for wages becomes volatile, which seems to be increasingly the case, it is generally very difficult for business to track the market because their operating models are predicated on the relatively non-volatility of wages. Adjusting to that is generally not easy or quick as it often forces companies to change the way they do business at a pretty fundamental level.
I've seen this play out at companies big and small when changes in market wages force them to change the way they think about hiring. Ironically, the replacement strategy is often to eliminate positions from the bottom half of the wage pool and to add a much smaller number of positions in the top half, at least in my experience. (It is increasingly widely believed that this latter strategy is superior in any case and there is evidence to at least suggest this is true.)
If a business was structured to deal with wages elastically, that's great for business, but can you imagine working for such a corporation? In theory, the reason we allow business to profit is because we all share in the benefits, but if a significant chunk of the market were structured like this, a large benefit to ordinary people (i.e. the ability to stabilly eat and shelter themselves) would be removed, removing a large chunk of legitimacy from the economic system.
If businesses were structured for high turnover, then we'd have to structure society for it too. This means providing all of the normal benefits to people via government services. Then, all employers would simply bid on workers with piece work or hourly contracts. People would continue having their medical care, food, and housing covered by the government, perhaps from a basic income.
I'm down with that. I just cynically expect that only the part that favors businesses gets delivered and the other stuff gets ground down to nothing over time. Just look at what's happening with the AHCA and Net Neutrality right now.
I've seen this play out at companies big and small when changes in market wages force them to change the way they think about hiring. Ironically, the replacement strategy is often to eliminate positions from the bottom half of the wage pool and to add a much smaller number of positions in the top half, at least in my experience. (It is increasingly widely believed that this latter strategy is superior in any case and there is evidence to at least suggest this is true.)