That would depend on whether or not local pay ended up increasing more generally or not. It makes sense this would actually lead to greater spending in localiti

That would depend on whether or not local pay ended up increasing more generally or not. It makes sense this would actually lead to greater spending in localities that didn't have it before. Admittedly that could lead to the more toxic gentrification form that you mention, but it could make it more possible for local people in an area like that to start businesses due to the larger local economy. Really depends on so many factors it's hard to be confident.