Heh infrastructure from 150 years ago is vastly different than infrastructure today. 150 years ago you didn't have buried electricity lines, telecom lines and fiber, robust water and sewage solutions. Those things need regular service and replacement. If your population goes down that means your revenue to pay for those things go down as well.
Couple of my friends were servers at their family's resturaunt growing up (early 2000s) and I think they only made about 2 and some change before tips. 30 year difference from your example and their wages were roughly the same amount. It's ridiculous.
No need to crucify him for it.