To answer your question, if pay went up prices would go up making pay insufficient again which would make pay go up there by raising prices, etc. etc. ad infinitum.
I just don't understand why all you people think companies sit around and run equations that track fixed costs, variable costs, and marginal revenue and then set prices based on cost. That is a damn fantasy. I have told this story before but it bears repeating. Marketing class, a top ten university, visiting speaker, Phd in business, VP with Procter Gamble. He holds up a can of Arid Extra Dry deodorant and asks, how to we determine how much to charge for this? My hot shot ass with my big Economics degree shoot my hand up and get recognized, I start waxing about MRC and maximizing profit and he cuts me off laughing. "Son" he says, "we charge whatever the hell we can get".
Price is based on supply and demand. Do you see "cost" in there anywhere? Produce something that costs more than the market clearing price and watch that company sell it at a loss and stop producing. Well guess what, labor works the exact same way. First, companies pay as little as they can get by with. In fact, people are not paid what they are worth. People are paid just enough to keep them from taking their skills and their knowledge to the competition. In fact, if minimum wage was based on productivity it would be north of twenty bucks an hour right now. People have learned to get by with less, and getting them back into the labor force is going to cost companies money. I mean I am sorry, but if Bank of America can implement a minimum wage of $25 an hour by 2025 for bank tellers, retailers are going to have to cough up more than $15.