Will simplifying the complicated help us solve the problem.

I don't think so. You are cherry picking and oversimplifying.

Some places higher wages might attract more worker but restaurant workers most are compensated by tips. Raising their wages does not make huge differences in the income.

You do not address how automation has changed the work place landscape. A company can decide to either hire more workers or buy better machines to increase output. Wages have stagnated while productivity increased. It is not that workers are working harder or smarter, they have been getting more help from machines.

High unemployment compensation is a perverse incentive in times of plentiful jobs.

Just a few anecdotes to go with yours. To do this topic justice would take a book at least and probably a trilogy.

TEK