What do you expect them to think? "Oh, sorry, I don't want to affect your much higher standard of living. I'll just stick to my subsistence living with my postgrad education then."
That's not the point. These people are asking for less than market value by a large margin. If the worker is worth less, then so be it but it's not the case here. I had an intermediate programmer tell me he would accept minimum wage. I could tell he was worth at least 40k / year which means he could have easily raised his expectations by double and still been under the minimum I would have paid him. So why was he willing to work for less than the guy sweeping the floor at McDonald?
I could add more about how our current lifestyle wasn't raised by government intervention but rather employee intervention through the implementation of unions. How do we tackle this new problem? Maybe through government as you suggest.