I think that's the part that many naysayers don't appreciate. When the average family is already under incredible pressure it does not take much to trigger a deep recession. Even if one or two percent of people lose their job right now that is going to translate into a lot of missed debt service, foreclosures, etc.
If the "solution" is a bunch of layoffs, it's just going to compound the problem. The solution is all these companies that aren't actually dying need to raise wages to match all the recent inflation.