Just to add to the top of the thread. The solution here is safety nets paid by taxes. "Firing management" is not realistic, humans are generally short sighted and its hard to identify when things are a bubble or not. You cannot put it on the laid off employees to understand the economy well enough and for low paying jobs to have the savings to support boom/bust periods always.

Similar to health care, it is useful to have safety nets to allow for the free flow of labor.

Now where it gets sticky is you cannot apply it outside of your country so in cases like shipping, the vast majority of their employees who run the ship are from low wage developing countries.