market pricing Quotes
This is the classic conservative argument against raising the minimum wage. Historically, if the minimum wage was raised well after there has been a period of wage inflation, there has been little or no negative effect on the lowest paid workers. However, when the minimum wage has been raised during a period of wage stability, there is an effect of making some workers simply not worth the rate that they must be paid. However, even then, after a year or two, the negative effect begins to dissipate.
This is the major argument always given against raising the minimum wage. Historically, however, when the minimum wage has been increased there has never been a large increase in the unemployment rate. However, if the increase would be huge it would likely have the effect of pricing some workers out of the market. Like so many other elements of politics, moderation is important.