>If they raised wages of factory workers
They then also can hire a better class of workers, leaving some working there now no longer working there. And as prices go up, everyone loses some value to buying these goods, which is then less to spend on other things.
When a worker is willing to work for some wage and an employer is willing to pay it, both sides benefit, and society as a whole is not paying extra.
> ... profits go down
As does innovation which is paid for from those profits. And outside places, such as teacher pensions, 401ks, union pensions, state pensions, all lose money too. Taking this money from those who funded Amazon via stock purchases and secondary markets would ensure that later there is less investment available for new companies, now jobs, new industries.
Stock markets lets companies get capital to grow and usually employ more people. Taking out these incentives means less companies and less jobs, which means less competition among employers to hire people, which means less wages.
Doing things inefficiently, such as paying lots more than needed to clear wage floors, or paying a worker to do one task instead of two, or similar, means less value in society overall than if the things were done efficiently.