The principle of supply and demand doesn't really work, it's too simplistic a view. In the small scale, in a controlled environment sure it works fine, but real

The principle of supply and demand doesn't really work, it's too simplistic a view. In the small scale, in a controlled environment sure it works fine, but real markets are messy with lots of factors impacting them, so it tends to break down rapidly. This has always been the failing of those that hew to the freemarket capitalist ideal, this unfailing belief in supply and demand as a market driver. One (but certainly not the only) missing factor here is a discussion of skilled vs. unskilled labor. The market for skilled labor is relatively small compared to unskilled labor, but even in that market companies struggle sometimes to fill positions, that's one of the claims companies backing H1B programs make (even if it is a bit dubious). On the other hand, there's an almost unlimited supply of unskilled labor available, and that's growing all the time. Further complicating things is the fact that the demand for unskilled labor is directly driven by the size of the market, and they tend to scale together. People desperate for any work to offset their costs of living are more willing at accept lower pay if it means getting a job and that's exactly the situation we see evolving now. All of this so far has been predicated on the supply side of things being the driver, but there's also the question of demand. If people had options they could fall back on then the unskilled labor market would demand higher wages and refuse to work under the poverty line forcing employers to increase wages. The problem is of course that people are so desperate for anything at all that they're willing to work in jobs that can't keep them financially viable because it at least slows the collapse. Eventually they'll either move into a skilled position that gives them a better chance, get sick, die, or turn to crime or drugs to try to cope. Long term this is of course economically disastrous, the middle class has all but ceased to exist, and the economy is slowly grinding to a halt as more and more of the population finds themselves unable to take part meaningfully in it. However in the short term it means record breaking profits for corporations. It's pretty obvious to anyone who's watched the policies that corporations have pushed for the last 40 years exactly what choice they're going to make.