when you pay people more, their free time becomes more valuable. For example, if you paid me 10 times more money than I make now, a likely consequence would be that I would work for you only shortly, and then enjoy an early retirement.

Whether your time becomes "more valuable" depends on what your baseline for value is. If your baseline is dollars, then your time hasn't become more valuable. Rather, your time has the same value, but with more money, it is easier for you to purchase time. Your time becomes more valuable only relative to dollars and for many purposes this situation could more usefully be described as "dollars go down in value" rather than "time goes up in value".

In particular this matters when comparing to poor people. Time is still valuable to them, but they are forced to use it up in order to get dollars or in order to avoid losing dollars.