> Companies shouldn't be able to set wages at an arbitrary low.
Why not? You seem to think that there is only one big company setting wages for everyone. If company X needs good workers and is only willing to pay $5 per hour, but company Y is willing to pay $12 per hour, company X is not going to get the good workers. If they want better workers they will have to raise their wages.
> without any regard to the standard of living for the employees making those wages.
The clients who pay me do so without any regard to my standard of living. They pay me with regard to the value I provide. If you are suggesting that low skill employees need to be paid based on something other than the value they provide then you are suggesting that they be given charity rather than wages.