I believe they are putting the cart before the horse; with the low wages for low-skilled jobs, few people saw it as worthwhile to get out of bed in the morning (because prices were already rising - anyone who buys groceries could see prices rise while packages shrank).
I believe a primary driver of the increased wages (especially mandated minimum wages) is to force more companies, through their employees’ paychecks, to contribute more Social Security funds. Federal income taxes may not rise, but there is no refund of SS contributions.