> That's true if the government is protecting the employee with a safety net, like welfare and ACA, and laws, like COBRA. A better-paid employee could save more money and provide their own safety net, as many high earners do with rainy-day accounts, investments, passive income, etc.

I personally would advocate taking away the safety net for able individuals and instituting a basic income. I think I would solve some of the market issues we are seeing with low wages. This will become more prevalent as automating gets cheaper.