$12 makes a lot of sense because it's approximately the highest value the minimum wage has ever been in real terms.
Higher would be better, but you can't let the perfect be the enemy of the good. $12 is way better than $7.
Pretty ridiculous that the government subsidizes corporations by paying tax credits and transfers to working people who earn the minimum wage. Not sure what wage fixes that issue the best but I'm sure it's higher than $7.