Comment Re:Of course employment went up (Score 1) 778
...The owner will have to decide between passing the overhead to the customer by raising rates (potentially losing customers due to the rate hike) or terminating a helper plus working longer hours to compensate. This type of hard choice happens all the time for small businesses anytime a major unexpected change occurs in the mechanics of the world that power that business. Computer repair shops weren't doing so hot a few years ago when Thailand flooded and new hard drive prices literally doubled overnight, for example; I wonder how many of them went out of business because of the spike.
What you're leaving out is that just as that employer is required to pay more, all the other employers are required to do so as well. This eliminates the crux of your main argument. No additional pressures are put on the business, since all other like businesses need to conform to the same standard. It's possible that prices might rise as a result, depending on the profit margins desired by the business owner.
What happens when more people have more income? Perhaps they'll be able to afford goods and services they were unable to afford in the past, or weren't able to purchase in the quantities desired/required without the wage increases.
Applying minimum wage hikes (perhaps $.50/hour each year in addition to increases to address inflation, until the minimum wage is, in fact, a living wage) would drive folks who don't save to spend more, driving consumer demand and pulling the economy along with it.
Feel free to disagree, but don't expect me to subscribe to your (IMHO) incorrect assessment of the situation.