Totally false.

1. Even if there are more people selling labour than buying it, the price of all labour will be lower resulting in lower prices for all goods, which means even with a lower wage, you’ll be able to buy enough to survive. Take India for example. Even if you earn less than a dollar a day, you can feed yourself 3 times a day. Is that possible in USA?
2. The ratio of people selling the labour and people buying it can be pretty small even in a deregulated market. That’s when more people try to set up their own businesses (i.e. more competition). In fact taking off regulations make it much easier and less costly to set up a business. This is common sense. You won’t learn it anywhere.
3. Talk about empirical data when you actually know how to analyse it. You can always give a word salad explanation and dumb people would still believe it.