Source: Foundation for Economic Education
by Walter Block
“Suppose my productivity is $5 per hour. That means that for every 60 minutes I am on your shop floor, your revenue increases by precisely that amount. You would not pay me more than that amount, because if you did, you would lose money on the deal. If my wage were $6 per hour, you would be out of pocket for $1 each such time period. But my wage, at least in equilibrium, cannot be any less than that amount either. For example, if you pay me only $3, you earn a pure profit of $2, and other competing employers will bid my wage up to that amount, again, in equilibrium. There is no guarantee that I will always and ever earn that exact amount, but powerful profit and loss market forces will continually work to push me in that direction.” (10/01/24)
https://fee.org/articles/will-an-increase-in-the-minimum-wage-give-america-a-raise-no/