Unfortunately, the short-sighted pencil necks who passed this law made no provisions for how the increased wages would be funded.
They took no measures like reducing the tax burden on small businesses, reducing the regulatory burden ($$s, time, paperwork) on businesses, and taking other measures to ensure that businesses prosper enough to pay higher wages.
The socialists have no concept of profit, loss, risks, and elementary economics of small businesses. They base their action on ignorance, jealousy, and basic mean spiritedness of their ilk. They could care less about the people who will lose their jobs, or the businesses that go belly up.
The net result most likely will be a dampening of the local economy owing to fewer jobs and higher prices. Of course they will blame "greedy" businesses.
From the article: “Newly elected socialist council member Kshama Sawant argued at one public hearing that, “In order to be a franchisee, you have to be very, very wealthy. But Kathy Lyons is a franchisee who says she’s not close to being rich. She took out a small business loan of $235,000 using her home mortgage as collateral to launch a BrightStar franchise. She invested her life savings of $200,000 into the home health care company and is now afraid she could lose it all.”
To your point, these idiot socialists have no clue how basic economics works, and should NEVER be elected to public office.