Earlier quoted context omitted.
What I haven't understood is: why don't people move away if they're doing min wage jobs in a place where they are clearly incapable of delivering any quality of life? Bring labor supply down and suddenly the market has to pay more. This seems to be simple oversupply in a saturated market.
Moving itself is expensive. If you're living paycheck to paycheck, you don't have the time or money to even travel to another location to look for better housing and a better job, let alone the time or money required to actually effect a move. Consider that for many people in this situation, missing a few days of work to look for a new place to live might mean getting fired. Even if they don't get fired, the lost wag…
I think these days we forget that the gov was never meant to provide a social net. The mechanism for that is charity. It's much harder nowadays with disconnected communities, but reaching out for help often works.
I myself spent years with belongings only as burdensome as I could carry (at worst case) or pack into my sedan. It made moving from one place to another easy, and I could always rent a cheap hotel to live in since I wasn't burdened by possessions.