I think our problem with this question is
1- not /sci/ related at all
2- were asking it like its a standalone event that doesn't effect anything else or depend on pre-existing conditions
So I'll bite, raising minimum wage is a temporary solution. The fact it keeps getting revisited means it's a shit solution that can't take care of itself.
At the very least tie it to some sort of inflation factor.
But what happens when min wage goes up-
Rent eventually goes up, land value goes up, cost of living goes up.
People with higher wages want more too to justify why they went to college and work a more complicated job.
An unfortunate minority of people who don't give a shit about the job and just need enough to slide by start taking days off cause they only need 3 days a week now to support themselves. One could argue great, 2 part timers, but that's more expensive than it sounds.
And yeah, hopefully more people buying more things instead of it being locked up in a fortune 500 slush fund, but you're assuming people who work min wage work for these companies. Mom and pops get hurt the most, and the more Amazon gobbles up the entire market the less people are needed to be employed to run it.
So basically I'm seeing just another way to temporarily hold off the effects of inflation only to have it come around again doublefold, where we take further action to hold off the effects...
You guys ever think about lowering the cost of living? Until that seemingly random yet ever increasing cost of property value and taxes is stagnated, none of this matters.
The same thing would happen in a UBI environment- more guaranteed money just means more guaranteed rent and tax values. Talk to any landowner.