Unfortunately, we seem to be stuck in this situation where we can't muster up the political will to try anything that has any elements of the dreaded "socialism". It's like a ratchet that can only go one acceptable way: More capitalism.
Yeah, it's unfortunate that the word "socialism" has completely lost it's meaning in the US. I don't think Americans truly comprehend how radical Socialism actually is. To compare increasing the minimum wage with Socialism is beyond absurd. Terms like "welfare state" are also loaded with negative connotations.
Concepts like "socialism" and "unions" have sustained a relentless smear campaign orchestrated by the right for decades. The propaganda is so bad that it's probably worse to be labeled a socialist than to be labeled a pedophile in the USA.