Isn't it circular: workers are able to take jobs that pay less than [imaginary] ...

dchest on Oct 24, 2013 | parent | context | favorite | on: McDonald's Tells Its Employees to Sign Up for Food...

Isn't it circular: workers are able to take jobs that pay less than [imaginary] minimum wage because government will subsidize their survival --> government subsidizes low-paying workers --> businesses can hire for less then minimum wage --> etc?

What's the cause and what's the effect?