We’ve raised minimum wage several times in Alberta (and other Canadian provinces). Each time the business community predicts dire consequences — and each time, the consequences don’t seem to manifest themselves.
My hypothesis is that giving a raise to the working poor class puts more money in the local economy; the working poor buy more things locally. This then stabilizes the employment situation for other working poor in the locality.
But give a manager a big raise, he just spends it in a Caribbean resort or buys sports car. Money exits the local economy pretty quick.