The low wage economy causes a downward spiral because people who don't have any extra money to spend can't contribute to consumer demand and job growth, and consumer demand (not so-called job creators) is what creates jobs. We already know this.
There's a lot of information coming out about how many people in the low wage economy are on government assistance such as food stamps, and Wal Mart leads the way.
On internet forms like Facebook, when it's pointed out how little Wal Mart workers make, I see comments posted by people who ask, if they don't like what they make, why don't they quit and go work someplace else. Workers at other chains like Wendy's, Target and Burger King are also among the most prevalent recipients of food stamps, as its pointed out at Daily Kos and at Good Jobs First, a corporate watch web site.
Those benefits come disproportionately from taxes paid by the working class. We are subsidizing the profits of the rich, who effectively and proportionately pay no taxes.
When the unemployment rate is permanently high, as it has been, you take any job you an get, which is just where Capitalism, and the politicians who enable it, want you.