The spiral-down effect

I bet you get this concept. I get this concept. My 12 year old gets this concept. But it seems to me that a fair number in unions are immune to this logic. Let me explain it for them based on a bus company (but you and I know that it also applies to our economy ;-) 
The spiral-down effect occurs when incorrect assumptions about consumer behaviour cause ticket sales (due to bad pricing), protection levels, and thereby revenues to systematically decrease over time. If a bus company decides to put up its prices to counteract falling sales, it subsequently yields lower sales and revenue. The pattern continues, resulting in a so-called spiral down. 

Likewise, in our economy, past a tipping point, the more tax you apply to businesses and wealth creating individuals, note I use the term wealth creating (those who make something or earn foreign currency), the less the Government is likely to collect. Such is spiral-down. 

Some seem to be aiming for a war path. If they do they will only serve to increase the spiral-down effect in our economy and kill a recovery. Hopefully someone somewhere will see some sense and call it like it is. As a 'small open economy' we cannot afford to have widespread industrial unrest - even if it would save money by not having to pay the strikers wages.