this doesn't mean companies go bankrupt
this was ford's (i think) strategy when he started his company - pay his employees almost triple normal wage, and get the best of the best. productivity and innovation skyrocketed.
likewise, In-N-Out (a fast food chain in the southwest US). they pay their employees a lot, and they work really hard to maintain a clean place and produce lots of tasty burgers. the company is doing really well, while places like McDonalds (which pay like minimum wage and only charge a little bit less for their burgers) are generally disliked