Logically, yes. Until there is a mandatory freeze on costs, raising pay feeds no one better than those who tax it. In Seattle, where minimum wage is raised to $15/hr, a significant portion of those who benefitted, immediately sought fewer work hours, so as to avoid losing their taxpayer-funded supplemental checks for free food and rent assistance. But as ability to pay increases, so does cost. As we saw the increase in higher wage earners in Seattle, we also see average rents at $2K+/monthly. So at $70K annual pay, the IRS takes a bigger chunk, and rent takes another $25-30K of that raise. Soon, personal austerity is close by. The new $80 jeans and $5 cup of coffee will have to wait.
As a result of the increase in minimum wage in Seattle, 1000+ restaurants (those most likely to see an increase in payroll) have left the city limits, or plan to soon, as the law takes effect. So, now the minimum wage increase will have to fund a car/insurance/gas/maintenance to drive for an hour in traffic (one way), to get to that minimum wage job, which now consumes more of your time, with just enough increase in purchase power to be able to keep it. So of course, they don't keep it. It goes to the guy who will work for less, living in that old job's new location. Here in Seattle, it is just a town outside the city limits. On a larger scale, it is a country across an ocean or a border. In the state of WA, 6800 new restaurant industry related jobs have been created since January. But in Seattle, with its new $15/hr minimum, 700 jobs have already been lost. And that number is expected to grow. So only those with a lot of extra spending money will be frequenting the places that pay more than anyone else, and charge more to cover the increase. And landlords know this. So, as most people in Seattle are earning more, most rents are climbing. And with 3% vacancies, there is no incentive for rents to come down.
So, until you can freeze all price increases, raising pay pays more, ultimately only to the IRS. Everyone else just moves up a level.
And the "two people" who left Gravity, were its top two people, and founding members of the company. As another here said, why work hard in school and pay a lot in tuition, to get a degree, to earn as much as the guy who didn't? Paying more for less is a disincentive to work harder for more.