If the owners of the small business don't change their own wages after a minimum wage hike then something is likely to a problem for them. We cannot assume that

If the owners of the small business don't change their own wages after a minimum wage hike then something is likely to a problem for them. We cannot assume that their cost of living will not increase in some way after the hike. They may indeed be already paying above minimum wage. But I pointed out that it's likely that many people who are not making minimum wage will see an increase in pay or will demand it. Let's say our small shop has two employees who make $10 an hour. They both now make $15 an hour, good for them. But that extra cost could have been a third employee. Let's say they hire that third employee anyway. Now the original two want a raise because it isn't right that a new hire makes the same as the experienced two. Granted, very simplified example that's rife with potential issues. So, if Wal-Mart's costs go up they raise prices. You are assuming that the small business won't have to do the same? Plus, if prices rise to counter the increased employment costs doesn't that eventually put us back where we started?