I dont understand why ”wages increase with free market activity"

Isnt the reverse shown to be true repeatedly thought history? We can follow taxes on the wealthy, for example, and see that income inequality was at its highest in times of minimal regulation, and at its lowest with heavy regulation.

The other problem I see with leaving wages to the market is that there is a huge difference in bargaining power. Anyone who has ever been unemployed knows this, to the point of accepting any wage...even at the cost of getting a second job. What history tells us though, is that conditions will progressively get worse if businesses are left to their own devices, until the people resort to violence ala the French revolution, the march on wall street, and countless other examples.