This kind of argument is less of a rationalization and more of public relations spin. It ignores the increase in consumer spending that comes with raising wages. In fact, it completely depends on skating over that fact.
What is more of an issue is that the fed will kill the economy to ensure wages don't rise. As soon as there is the slightest sign that wages are rising interest rates will be jacked up - it is only inflation when wages rise, not asset prices.