And yes, you're right, in a vacuum raising the minimum wage would reduce demand for labour. But we don't live in a vacuum and there's a lot of other factors at play.
> You could also raise prices (which will increase the cost of living and nullify the benefits of increased wages across the board)
Yes, this is what happens in real life, most of the time. Now the real question is does the increase in price fully nullify the increase in wages?
And yes, you're right, in a vacuum raising the minimum wage would reduce demand for labour. But we don't live in a vacuum and there's a lot of other factors at play.
> You could also raise prices (which will increase the cost of living and nullify the benefits of increased wages across the board)
Yes, this is what happens in real life, most of the time. Now the real question is does the increase in price fully nullify the increase in wages?
Again, lots of other stuff to consider.