Geoffrey MillerVerified account

It would certainly cause an enormous shock to the economy, lead to less hiring, and increase the demand for labor-saving technologies. But, I've heard some arguments in favor of a high minimum wage that were at least reasonable and suggested that it would increase productivity.

The labor-saving technology would be more productive, so higher labor costs eventually shifts the economy in a more productive direction. I don't know where that labor goes. But, ultimately, higher productivity is usually a good thing.

If your economy is using wages as an income delivery system, then you have to weigh the disadvantages of higher minimum wage laws against higher worker incomes. If your economy has a basic income to raise instead, then wages can do what they're supposed to: motivate work.

Higher minimum wages and definitely setting a wage floor with a job guarantee would cause all wages/salaries to increase from the bottom up.