I don't get the purpose of this discussion. Zippy is leading us into a discussion that is, fundamentally, more about morality and philosophy than economics. It makes no difference what we want if we are powerless to change it. So blanket statements like "we need more ____" are just reflections of a personal situation from somebody who happens to need that.
As long as we can get the government to stop trying to "fix" things, then I am fairly certain that the economy would do just fine without it. Why are we even worried about unemployment numbers and what wages are? If the government were not involved, then unemployment would not matter nearly as much because there would be no central planner to which that figure represented something. Wages would also be less of a discussion because they would, first of all, probably be higher due to the lack of taxes and restricting regulations. People wouldn't go around worrying about comparing their wages to some fictional "minimum" and superfluous discussions about how to "create jobs" would be non-existent.
Instead we are living in a fantasy world where what we want is just one magic arm of government away from being achieved through some sort of government action. In a free market economy, such superfluous debates would not take place and reality would be far more present than it is now. What a job should pay is a question for people who wish for the market to be manipulated. If that wasn't their goal, then they would not be taking place in such discussions.
Higher paying jobs would likely result in higher prices, but only within a certain framework of government manipulation. If we cling to the current model, then nothing will get better whether "we" (there's that word again) were to raise wages or lower them. Only if we step outside of the current government framework can we truly have a discussion about cause-and-effect because that is the only position from which we can base our discussion on reality instead of speculations about how "things would be different if I ran the country." That said, we can't know what effect any change in wages would have if we were to abandon the framework of government control. It could quite possibly accompany a drop in prices. We just don't know and we can't say what would happen if we only operate within this framework like Zippy seems to be.