the actual stagnation that an expectation of mutual loyalty causes
So you're basically advocating that employers and employees should not be loyal to each other, so there won't be any feelings or expectations of loyalty that can negatively impact productivity. That completely ignores the positive effects of loyalty, which are well documented.
You're being an armchair economist, that has identified a single relationship that he uses to explain everything.
advocating that employers and employees should not be loyal to each other
Unfortunately I have yet to personally see an example of a corporation being loyal in my lifetime. On the contrary I have seen the trust of family members abused by their employers.
I do believe in positive effects of loyalty, but that loyalty can only function when it is mutual. The reality I have seen for myself and my family is that corporate loyalty does not exist. Individual humans can be well-intentioned but organizational behavior is the ultimate arbiter of the relationship.
One definite misfortune of the current state is that the power relationship between employer and employee is unbalanced. In theory that relationship is a capitalistic trade of time for money, but the severing of that relationship is far more disruptive to the individual. I think much of the resentment found among employees results from the loser's choice between a poor employment situation and the uncertainty and upheaval of changing employers.
Only I can take responsibility for my own well-being.
Edit: The one counterexample I have seen is SAS. That privately-owned company treats its employees extremely well. Its turnover rate is also nonexistent.
In theory that relationship is a capitalistic trade of time for money, but the severing of that relationship is far more disruptive to the individual.
Sometimes it is, sometimes it isn't. A startup I'm consulting for recently lost an employee, and it hurt us far more than the employee.
In general, a recurring trade creates wealth. Ending the trade tends to hurt whoever is getting the lion's share of the wealth created. In the case of unionized workers, that tends to be the employee. In the case of high value workers, that tends to be the employer.
You'd be hard pushed to find an organisation that is able to be loyal to it's employees. There are some but they're in the minority, especially if we're talking about a company that can employ a lot of people.
The whole employer-employee relationship has inherent friction due to pay. This affects trust and loyalty. It is an employee's responsibility to ensure they maximise their earnings for the skills they have and it is the company's responsibility to keep outgoings low. Such a scenario will always breed suspicion if the working relationship is not sweet and parties do not spell out their long-term expectations.
So you're basically advocating that employers and employees should not be loyal to each other, so there won't be any feelings or expectations of loyalty that can negatively impact productivity. That completely ignores the positive effects of loyalty, which are well documented.
You're being an armchair economist, that has identified a single relationship that he uses to explain everything.