Price Elasticity of Demand. This is clearly inelastic with respect to pilots (the buyer) and the income their jobs offer (the good being bought). Pilots treat flying an airplane almost like a parent treats the cost of a procedure to keep his kid alive(perfectly inelastic). Yeah it's making some applicants reconsider and turn away, but the majority still flock to these jobs.
It is for that reason that I don't buy that there is any dramatic diminishing in supply, which is sad but proves that if the regionals decided to not pay anything at all for the position of a pilot, many would still accept the job.
That compounds to the other problem, the opportunity cost issue. If there was a stable and reasonable probability of attaining and keeping the income attached to the jobs that people want and are in effect accepting low wages early on in their careers for, then it would be a reasonable economic move to pursue the pilot thing. But, when that is not true (anymore) then the opportunity cost is really high. (sh$tty QOL for years just to get furloughed, and now ¿unwilling? to start over = merry Xmas wife and kids, no college for you next year jr.) Once again, because of the inelasticity of demand people still do it. I do feel that if GA was affordable for the middle income earner it would help alleviate the problem. I know plenty of people who attempt to pursue flying professionally because they cannot afford to do it privately (myself included).
Will that sentiment change? Perhaps to certain degrees for some people, but most will keep chasing the carrot tied over their backs (major jobs) and continue fueling that inelasticity.
The solution? Hmm, ab initio perhaps? That would certainly kill off GA in this country though. Who knows.