the minimum wage is raised the same exact thing happens.
unions get a BIG raise, since their pay on government contracts is a multiple of the local minimium wage.
the prices go up.
business that were barely holding on...fail.
other businesses see the writing on the wall and leave
(Texas is ready when you are...no income tax)
and lots and lots of jobs go away...never to return.

Lately there's a new twist.

why pay people when robots are cheaper?

the wage that an employer pays is less that half of what an employee cost him. In some states, such as california...it's much less than half. At some point it's cheaper to buy (or rent) a robot to do the job instead of putting up with the hassel of people.

Once that line is crossed..they never come back.