My point in the first paragraph is more that Amazon is only able to pay that amount because the government steps in. If there were no government aid, then they would need to pay more or not hire people. I'm skeptical that the jobs are worth less than $7.25 an hour to them. It's just in their interest to extract as much value as possible from the employees. If they couldn't find people to do it for 7.25, I suspect they would pay more, not that they would cut the jobs.

> My point in the first paragraph is more that Amazon is only able to pay that amount because the government steps in. If there were no government aid, then they would need to pay more or not hire people.

No, if there was no government aid then people would be even more desperate for whatever pittance Amazon was offering; government aid increases wage demands two ways:

(1) moving people's starting income up increases wage demands because the declining marginal utility of money means that it takes more money to offset the disutility of performing servile labor.

(2) Means testing of aid programs (loss of benefits for outside income) means that it takes more than $1 of take home pay to net whatever the utility of $1 is, since some utility is lost to lost aid.

It's possible the total (not just wage) cost for labor would be higher without government aid, because the aid provides increased stability which makes it easier to hire and easier to retain workers, by enough to offset the higher wage demands. But that's, at best, a non-obvious conclusion.