- specific allowances (paid parental leave, paid sick leave) for obvious reasons

- "blanket" paid time off outside of federal holidays for recreation and stuff like parents dying

- extra PTO or working hours reduction to take care of sick/terminally ill relatives

- wages big enough to allow everyone working full time to save a meaningful amount of money

Most developed countries outside of the US have realized this. All countries in Europe have the first two points already covered (paid parental, sick and general time off), Germany has the third one covered since 2012 ("Familienpflegezeit").

The only thing we all seem to be lacking after decades of wage starvation and neoliberalism is the last one - but COVID-related disruption is likely to incite a massive paradigm shift as the market goes from an employer market to an employee market and companies are pulling production back on-shore for a myriad of reasons.

I don't know that I agree with the specific optimism in your last paragraph. Apart from the basic death toll, I think most of what is driving the "labor shortage" is people knocked out of situations where they were barely treading water, and retreating to lower rent areas and living with family. So wages will only rise enough to get people moving back onto the rent treadmill, and won't necessarily give away surplus wealth to increase their bargaining power. I'd love love to be wrong about this, of course.

IMO what is really needed to fix the economy is for the government to stop feeding the asset bubbles (aka giveaway to the upper class) through this ongoing combination of ZIRP plus austerity. Raising interest rates would lower asset prices, making home ownership more obtainable (despite the short term pain). And government-spent stimulus will cause distributed price inflation that will hopefully make the Fed raise rates, as opposed to the past few decades of runaway asset-only inflation that they've been able to conveniently ignore.