Unless the minimum wage laws are written with prices freezes in them as well all businesses wil raie their prices to absorb their higher overhead which in turns raises prices on those that deal in business with them.
Think of McDonalds. The have lots of minimum wage people. they will have to raise prices some to compensate to hold their margins. But additionally all the places the buy stuff from like the hfarmers who sell headlettuce will have to raise their prices as well. so McDonald's price will not raise just to compensate for their increased labor costs, they will als raise to compensate for their higher ingredients costs.
In essence whe you raise the minimum wage all you do is stir up the makets for a bit and then it all settles down at a new higher level.
A.K.A. Inflation.
ANd all the chest bumping about how you gave the poor man more money is basically crap, when actually what you did is raise prices for everyone who didn't get a raise.
You're 100% correct. It also can have the effect of pricing a job out the market.
I wish that republicans could get this point across but unfortunately it is probably too complex for the masses.
The masses would rather have a dose of a feelgood measure.
The minimum wage has an effect not dissimalr to the VAT tax in the UK - highly inflationary.