The cost of labor doesn't behave like other things, because people spend their wages. Raising wages can boost aggregate demand, making more work for everyone, i

The cost of labor doesn't behave like other things, because people spend their wages. Raising wages can boost aggregate demand, making more work for everyone, including low wage workers displaced by increasing productivity. Artifically increasing wages has the effect of forcing investment in productivity (rather than relying on the low cost of labor). Increasing demand also makes the labor market tighter, which boosts wages and encourages further productivity increases. Boosting wages for the lowest paid workers also has good distributional effects because wages have higher utility, are spent more, etc. Etc.