It's not being "wiped out", it's being scaled down to sustainable levels.

If "the authorities" protect price levels for every job that is in a larger supply than demand, that money goes straight out of the pockets of the people who perform jobs that are in demand, i.e. the people performing the tasks that are needed the most by all the other people.

You have a less efficient economy as a result, which makes people poorer on the average.