The argument against that is base wages may drop as business pay less because people can afford to take lower paying jobs, or as low as minimum wage allows.
My country (NZ) pays most families a weekly amount based on how many kids they have and their household income (Technically it is a tax break and so only applies to people who earn money, but for most people it might as well be a payment).
Some have claimed this has suppressed wages and is a subsidy to businesses from the government. Minimum wage rises counteracts this. I am not sure if this theory can be proven.
Regardless I would expect a wage/price spiral causing inflation initially:
My country (NZ) pays most families a weekly amount based on how many kids they have and their household income (Technically it is a tax break and so only applies to people who earn money, but for most people it might as well be a payment).
Some have claimed this has suppressed wages and is a subsidy to businesses from the government. Minimum wage rises counteracts this. I am not sure if this theory can be proven.
Regardless I would expect a wage/price spiral causing inflation initially:
https://en.m.wikipedia.org/wiki/Price/wage_spiral
https://www.ird.govt.nz/topics/working-for-families/can-i-ge...