So I can pay you this amount which is a living wage or I can pay you this amount which is a lot lower because I know that the government will step in and not let you starve.
Hmmmmmm, tough decision.
So the government props up shit businesses which undercut legit businesses and its all a race to the bottom.And that is why the working man is screwed at every level.
If your business model doesnt allow you to pay a living wage then its not a business its a welfare dependent.
I don't know about where you live, but in the USA, people have choices. You have the choice to make crap money, you have the choice to become middle-class, you have the choice to do better if you really desire.
As for business, many don't have the choice of paying a living wage. If they pay their employees a living wage, their competitors who don't pay a living wage will put them out of business.
You and I both own widget factories. In my factory, I pay my employees only what they are worth. In your factory, you pay your employees much more than they are worth. Because of my lower labor costs, I can sell more of my widgets than you. After a while, I start taking your customers away because my product costs less than yours. If you allow that to continue, I eventually put you out of business.That's the way it works.
As for the worker, we are only worth what an employer can find somebody else to do the exact same job for with the exact same quality. If you stock shelves for a living, anybody can do that job, so your worth to employer is very little since he (or she) can find anybody to do that job. If you want to make yourself worth more money, you need to be able to do a job that less people can do. The less people that can do a particular job, the more money you can make doing that job. That's why engineers, registered nurses, architects, computer IT people make much more than a living wage. They got training and experience to do jobs many others cannot do.