Well when we have lots of labor, and seemingly not enough jobs for people, even when they could be doing productive things that build their own wealth and others' wealth (like building homes), then that $7.25 wage being the "best" option is a failure of the system, because too few people I society have been empowered with the option of starting their own businesses, or having the access to the tools that would let them create wealth. Too much inequality, not enough people with money to spend, and not enough capital movement to allow people to create new jobs.

Capitalism is a fantastic means for directing economic forces as long as everybody has enough capital to do the voting, as it were. If only a few people hold all the capital, then only a few people make decisions and will often engage in capital strikes rather than risk the chance that their position may be threatened.