You're missing the whole relativity of it all. Yes, they will have more money to spend (if they still have their job), but the things they spend money on will be more expensive so there is no REAL change.
That's the chicken and the egg type scenario David was talking about earlier. Prices don't HAVE to go up, it's just easier for businesses to pass the buck down to the consumer. And studies have shown that if prices do go up, they'd be miniscule. And if a restaurant decides that because the minimum wage went up, they are going to charge double (hyperbole, I know) their usual price for a hamburger? Then people will stop buying it. Prices will only get as high as consumers will let them.
|All you are doing is shrinking the participating labor force.|
I disagree, for reasons I stated earlier.
Now we definitely are at full circle.