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Arguably, higher wages means more spending power, which means more business revenue, which means business can afford to pay the new minimum wage.
How can people making the current minimum wage in CA afford to buy luxury goods?
Just saying it's not as cut and dry as supply/demand economics. If you don't make enough money to afford survival goods then it falls to the government to provide, and then taxes go up. Raising the minimum wage is one way to transfer the burden from the general public/welfare to the private sector.
It doesn't work that way. Businesses aren't going to sit around and wait for an increase in revenue. They're going to protect their profits. When minimum wage goes up, hours get cut, full time positions get eliminated and hiring freezes go into effect.