Wages are meaningless to talk about growth. What matters is standards of living.
Standards of living have SKYROCKETED and companies producing new products (which they need cash reserves and profit incentive to do) is what increases standard of living. Someone in 1970 may have earned more on an inflation adjusted term, but they are living a more lavish life today with less money and have better health and more life expectancy to boot. How many people in 1970 had a color TV? A car with airbags? A cordless phone? A place to argue with other people around the world?
Corporations are not hurting anyone when they have lots of cash on hand. You act like corporations are people, but they aren't... That money will eventually get spent for salaries (taxed), capital investment (taxed), buying back shares (taxed), dividends (taxed), or other investments (taxed). Sitting on it simply gives the company greater stability and long term growth. But our government is not good at planning for the long term. Hell it seems like they can't see past the next election most of the time. Companies want to be around for the long haul, most aren't in business to make a quick buck and be gone tomorrow.