There may have been a typo but your reading comprehension seems pretty horrible. Let me rephrase.
The choice is never between "Pay what it costs for people to live good lives" and paying less than that. The choice is between paying what the company can afford or having no job at all.
I'd prefer everyone be making enough money to buy a 2000 sqft house and groceries with enough left over for leisure but that option isn't on the table.
Company A makes Widget for $20. It takes 1 Employee B hour to make a Widget. Widgets cost Company A $8 to manufacture. After accounting for management overhead, logistics and the cost of storage, Company A clears $10 per widget. Company A can only afford to pay Employee B $10 to break even, this is not a living wage.
In this scenario, you'd prefer Widgets not exist and Employee B not have a job.
Since you're going to say, "Raise the price of Widgets!". $20 is the ideal price point for product, any more or less and the volume sold * profit falls and the possible wage for Employee B will drop.
The choice is never between "Pay what it costs for people to live good lives" and paying less than that. The choice is between paying what the company can afford or having no job at all.
I'd prefer everyone be making enough money to buy a 2000 sqft house and groceries with enough left over for leisure but that option isn't on the table.