The sky is falling! The sky is falling! But there is no need to run if the nature of the problem is understood and proven solutions applied. The problem is overpopulation and overpriced labour. Population control has been successfully tried, check with the Chinese if guidance is needed, so I will concentrate here on bringing labour costs into equilibrium. And the best tool to accomplish this is the unfettered market.
In the short-term, the solution is to return government to the position of reducing inequalities in society but not as was done under the mixed economy model.
Under that model, the government in some cases tackled inequalities by interfering with the efficient functioning of the market (establishing minimum wages, promoting labour unions, gender equality, etc), which is the cause for the disequilibrium.
