Well, you can speak of how markets would balance themselves. Sure... but in the short term: - Some people have built their business model on top of cheap labor

Well, you can speak of how markets would balance themselves. Sure... but in the short term: - Some people have built their business model on top of cheap labor. You take away the cheap labor, then the business model does not work anymore. - Some other businesses, rely on cheap products and services. If you make those products more expensive, their business model doesn't work either. People would say then, "that's a good thing, because now supply and demand, wages go up, prices go up, etc...". Well, not so fast. Local producers are not alone in the world. Instead of paying more, you will just start importing from cheaper countries. Does that help the local economy? probably not.