Right. If a business is not profitable enough to pay sustainable wages, they deserve to go out of business.
I see there are a few tech trends attacking this problem already. One is the ever-expanding empire of Amazon. There are simply no reason for majority of shops to exist anymore. The latest casualty is Sports Authority. Why go to a physical shop, with its vastly smaller selection, when Amazon can ship things to you in the same day?
I see Amazon branded vans out and about in the Bay Area. They are up’ing their delivery game. More and more people are buying grocery from Amazon. So those “grocery bagging” jobs will go to the Central Valley like Tracy where Amazon has fulfillment centers. Bay Area solves the “low skill” workers problem by getting rid of the need for them.
Another interesting angle is the “share economy” tech trend aka Uber, and the gazillion startups modeled after Uber. Taxi driver as an occupation may come to an end. Replacing them are people doing part time work driving Uber. I wonder if other lower skill occupation will get assaulted by part timers. So Bay Area may need fewer full time low skill workers.