> which means that they are being paid approximately the same amount that their labor costs to produce
No, "living paycheck to paycheck" means you're spending everything you get each month. There can be all sorts of reasons for that.
> That makes their wages an exchange of equal value, and thus not profitable.
This is true for all profit. If you lend me money and profit off the interest, we've decided between us that the time value of that money is worth that interest, and so it's an exchange of equal value.
If a business makes $50,000 in revenue, and has $50,000 in costs, we don't say that business turned a profit. If a person makes $50,000 in revenue, but has $50,000 in costs, we tax them as if they profited $50,000.
No, "living paycheck to paycheck" means you're spending everything you get each month. There can be all sorts of reasons for that.
> That makes their wages an exchange of equal value, and thus not profitable.
This is true for all profit. If you lend me money and profit off the interest, we've decided between us that the time value of that money is worth that interest, and so it's an exchange of equal value.