It's a plausible position, but is there evidence for it?

Isn't this fundamentally the point of capitalism?

That enlightened, distributed self interest is the only system capable of rapidly reacting to changes such as this?

To prove an oscillatory effect, you'd have to come up with a system in which the end result negatively impacted the original cause.

The strongest case would be in materials pricing, but it seems like that's more demand than labor / supply side.