Oh they know that. The issue is they're doing their damned level best to stamp that out. In the old USSR they simply killed you for it. That day isn't far off here anymore.
Well the “powers that be” may well be aware of this, but obviously not the rank and file ‘well meaning’ liberals who insist that doubling the minimum wage and mandating break times and full insurance for all full time employees will most certainly NOT harm those who the legislation was designed to help.
But they are wrong. Such legislation always harms the marginally employable when they try to “improve” working conditions and pay.