There are lots of service industry businesses (fast food being an obvious example) that operate on very thin margins and would consequently go under if the minimum wage shot up too high.
And not only would it discourage potential entrepreneurs from starting businesses, raising the minimum wage sharply would cause inflation to rise sharply in concordance, negating any benefit in the long run.
And not only would it discourage potential entrepreneurs from starting businesses, raising the minimum wage sharply would cause inflation to rise sharply in concordance, negating any benefit in the long run.