The issue isn't the price of north American labour imo. Take my opinion with a grain of salt as it's definitely uninformed and will reflect my leftist beliefs, and I welcome criticism, but I reckon it's a combination of a few factors.
The costs of goods from Asia have gone up with the increased standards of living and income in China, products have become increasingly complex and the supply chain bloated, fuel costs have increased exorbitantly, and the finance and marketing industries have grown a lot.
The sweatshops of China have become automated factories and machine shops and (quite reasonably so) their income has increased, which costs us more. Same kind of progress Japan saw, originally people bought only American because japanese products were junk, then China made the junk and Japanese was quality, now Chinese products are increasingly of higher quality and more products will be made in places like Bangladesh to drive costs down. But manufacturing has already gone overseas, so prices keep going up without a correlating increase in income. The only upside being that, at this point, outsourcing has somewhat stabilized so we're not likely to lose an obscene amount more domestic jobs - if it's not already happened, it's not going to get cheaper to outsource.
This has happened while products get more complex and fuel costs have increased. Consequently, we're spending more on foreign salaries than ever. This is not a "boo china" thing - we've lived luxuriously on the backs of cheap foreign labor for years. There could come a time a thousand years in the future when the entire world has gone through the same development China has, everyone country is somewhat "first world", and we see this "problem" at it's worst. It sucks compared to the deal we had, but it's not unfair, realistically speaking.
As we've lost domestic production, a lot of industries like finance and marketing which, to a degree, "skim some off the top" rather than purely increase domestic production have gained a lot. There was no equivalent to Google before Google, and advertising is the reason they're such a juggernaut. Consequently everything we buy has a much larger margin for those sorts of things.
Products are also not built to last. While advancements in engineering and the state of technology mean we could build cars that last decades until they're totalled, and computers/phones are fast enough to run literally anything we need, they're not designed to do so for more than a few years. They're not designed to be upgraded to catch up, or repaired to extend their life. So instead of buying a car to last 30 years and spending money domestically to fix it, we buy a new car after 6 years. A Mercedes is not designed to be easy to fix if you get a serious engine problem. But if you open up a 95 Civic it's almost a home garage job to replace the engine. Instead of designing software to be more efficient, we let it bloat freely and replace the computer to catch up.
We're also taking better care of the planet, which meant ditching some terrible practices that saved money. Resource scarcity has had an effect on this, too, with recycling becoming not only the "right thing to do" but also financially prudent.
So, all in all, it's largely an unavoidable (and reasonable) result of not getting shyt for dirt cheap anymore, and somewhat a result of consumerism becoming more ridiculous than ever. If we want to improve things, "buy domestic" and "purchase serviceable products" needs to be the mantra. We need to build cities smaller and not just sprawling suburbs.
And, to answer your question more directly, increasing national wages would drive up income more than it would drive up costs - if you spend 100% of your income on stuff, and stuff is 50% foreign resources and salaries, 50% domestic, then a doubled salary would only increase product costs 50%. Very incomplete picture, but explains well why minimum wage increases are entirely reasonable give the obscene costs of living nowadays.
EDIT: since someone reminded me, corporate/executive greed is also at an all-time high. Big ol rich-off between Bezos and Musk. And I'm sure y'all have seen the graphs showing executive compensation vs worker compensation. Unfortunately it's the people hit the worst by this greed that tend to be most against limiting that greed. I'd love to see numbers on what the average worker salary would be if every CEOs bank was drained of any cash above $50M and distributed evenly.
) you are holding on to that home indefinitely. So the 6certs, etc gang who have the money will buy whatever new construction/available properties at current prices (because higher income people are still buying). SADLY it’s the average Joe getting priced out. 
