Ask HN: How to manage the team when shit goes south?

Imagine your team is burdened with lot of production fires, not able to spend time learning new things. Team's morale is down and everybody is frustrated, while wishing to leave. The product doesn't seem super important to upper management as well. What's the best thing a manager can do in this situation?

Should the manager accept the situation, ask people to work on it and tell that things would get better (even though they are probably not going to be)?

Want to hear opinions from engineers and managers.