[parineum]

Company A makes Widget for $20. It takes 1 Employee B hour to make a Widget. Widgets cost Company A $8 to manufacture. After accounting for management overhead, logistics and the cost of storage, Company A clears $10 per widget. Company A can only afford to pay Employee B $10 to break even, this is not a living wage.

In this scenario, you'd prefer Widgets not exist and Employee B not have a job.

Since you're going to say, "Raise the price of Widgets!". $20 is the ideal price point for product, any more or less and the volume sold * profit falls and the possible wage for Employee B will drop.