Yeah that makes sense and I agree with the sentiment. But unemployment seems pretty low in the US so it doesn’t seem like there’s enough supply and lack of demand to warrant wages dropping that much. I agree it could drop but was wondering if $2 was just random guess or backed by anything.

Oh, $2 is a guess, I don't know the number, but it's low.

Factors are non-market issue such as social welfare programs, incidental wealth (i.e. kids with upper middle class parents, living at home choosing not to work), general attitudes, the difficulty of the labour (outside vs. inside), the relative buying power of the $2 (i.e. in a remote area, it may be possible to have 'micro homes' and get by, and social acceptance.

Wages for undocumented labour might be a hint at the number though that's probably more than $2, my bet is that's somewhere north of $6-8 right now.

My $2 take is 'long view' i.e. we see favelas in Brazil, people will accept that quality of life unless there are institutional pressures otherwise.

Also consider that the unemployment rate does not count those who have stopped looking for work.

On the flip side, gig work, tipped minimum wages, and unpaid labor (e.g. unpaid internships) is extremely common and can definitely bring in pay less than minimum wage. I can only imagine what would happen in cases where the backstop of minimum wage was removed.