If someone is voluntarily willing to do a job for $5 an hour, more power to him. He's filling a need at a cost agreed between him and the employer. What is immoral is the government telling him how much his labor is actually worth. I don't see what the problem is if wages are a voluntary agreement.
Ideologically, your theory holds water. In a true capitalistic economy, supply and demand would keep that pay at or near the living wage. Sadly, we live in a corporatistic economy, not a capitalistic one. Supply and demand don't work like they are supposed to anymore, especially since most jobs get shipped overseas now anyways. Like it or not, we need a federal minimum wage, barring some drastic change in economics...
I agree that CEO's, Wall Street and Banks took us all for ride with the government along with them. This debate is really about economics and the differences between local and state markets. If you really want to help people economically then support policies that strengthen the dollar. Instead of the current devaluing and inflation of it. Inflation is really the biggest culprit here. It hurts the poor more than anything. No matter what the Federal Reserve says. Inflation is a lot worse than they say it is. Sound money and fiscal policies.
"Politics is the Art of Looking for Trouble, Finding it Everywhere, Diagnosing it Incorrectly, and Applying the Wrong Remedies"
Of course we live in a corporatist economy, but it's due to excessive government regulations. Sure McDonalds and Walmart are able to adapt since they are multibillion dollar corporations, but it's always the small businesses that suffer.