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> if you work a solid hour and only earn $1 gross income, that seems extremely exploitative

If that $1 per hour provides you with a better income than your peers with less physical labor, then this doesn't sound exploitive at all.

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(Especially if you sub-hire other people for 0.60$/hour, pocketing 0.40$/hour from each of them for ZERO effort.

Who then can sub-hire other people for 0.40$/hour, pocketing 0.20$/hour from each of them for ZERO effort.

Yes. In a perfect information market, this will not work. The people that can do the job for 0.40 will do it directly for that amount or they will get it for 0.60. But information is a scarcity for poor people and that makes the market very very inefficient with a lot of people getting part of the cake without adding any value.

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