Demand and supply does not apply when you are talking about involuntary labor. Given that a lot of labor is forced wage-slavery (the "freedom" to choose between

Demand and supply does not apply when you are talking about involuntary labor. Given that a lot of labor is forced wage-slavery (the "freedom" to choose between working to death and starving to death / being homeless is not freedom), your point about the equilibrium is false. Labor wages are simply the lowest that labor can be paid.