> Or in other words, both conditions already happen automatically. That's kinda the whole point of capitalism.
Not necessarily. Two scenarios come to mind:
1) Collusion among employers. This necessarily disrupts the "ideal" marketplace. It has happened, does happen, and will continue to happen. The result is, perhaps, fair wages that are not truly competitive. The employees are captive (depending on their financial abilities) in the local market and forced to accept unfair or uncompetitive wages for their work or go without.
2) An abundance of workers can result in competitive, but unfair wages by driving down the pay needed to keep an office or business staffed below fair (I read fair as alternatively what the job is actually worth or what is needed to live). An employer can offer a competitive rate 50 cents above others in the area, but that doesn't mean it's a fair wage.
