It's not outside the realm of possibility that were I to take on LeBron James in a game of one-on-one basketball, he would kick my hind parts. Strap 15-pound weights on LeBron's ankles, and he would still thrash me. So the extra 30 pounds LeBron would be lugging around wouldn't have diminished his performance, right?
Of course that's nonsense. Yet minimum-wage supporters make just that kind of argument: Strapping increased costs on the ankles of the economy by increasing the minimum wage, they say, won't negatively affect economic performance. Equally nonsensical.
The notion that Minnesota should raise its minimum wage reflects moral values, not economic principles. Minimum-wage supporters may aspire to provide a livable wage and basic standard of living to low-income households, but a moral rationale justifying an economic policy, however well-intended, is pragmatically a faulty means to the end of bettering people's lives.
Ironically, determining wages according to a personal concept of "justice" rather than through market forces always negatively affects job creation, puts upward pressure on prices and downward pressure on wages, and contributes to the maldistribution of resources. It always hurts most the people it intends to help.
Always.
Using statistics and studies the way a drunk uses a streetlight — for support, not illumination — minimum-wage supporters look at only the easily measured and visible effects of minimum-wage policy (like the outcome "LeBron wins") and remain willfully blind to unseen but inevitable negative consequences of an arbitrary floor on wages (like the deterioration of LeBron's overall play).
Consider studies "proving" that when the minimum wage is raised, employers do not raise consumer prices. Because other economic forces are always in play, indeed, little quantitative effect may be seen in an industry affected by the minimum wage. What remain unseen, however, are the qualitative effects of the arbitrary wage increase on the industry and quantitative effects on the economy as a whole.
Raising prices is not as simple as changing an item's price tag. Prices are always determined by what the market will pay and not by what the vendor needs or wants to charge. Not all cost increases can be passed on to consumers in higher prices.