Why was the private sector "deflating"? There are always causes and effects. The deflation is an effect of a cause. Increased costs harm business. One increased cost is taxes imposed by government. Another is the demands of union labor. Inorder for a business to profit, it must minimize costs or raise prices. If it raises prices it loses market share. In America the only way to maximize profit by minimizing cost is to move offshore away from the taxing government.
But s superior intellect such as yourself already knew that.