I see you think this is a win-lose system. Free markets, however, are a win-win system. Both parties must win for the transaction to happen.

The employer-employee relationship is just another transaction, and should be win-win. If a manager sees it as win-lose, he should be fired. The same goes for an employee.

I've been an employer and an employee, and always recognized that it should be a win-win relationship and approached it from that angle.

This is a very naive approach. Some market corrections happen very late (decades later) and some never happen.