They aren’t, the problem is that the “baseline amount of money a person needs to survive“ is extremely low compared to modern standards, and generally way lower

They aren’t, the problem is that the “baseline amount of money a person needs to survive“ is extremely low compared to modern standards, and generally way lower than what minimum wage dictates. The result depends on how many people can do the job and how productive the job is. If the job is reasonably productive but anyone can do it, the result is a bidding war between sellers fighting for a job (race to the bottom).