Do you really think that you'll still attract those qualified applicants after every business has to raise their wages? No, you will have to raise even higher to attract them. Now let's talk about the other parts of your argument: "these people use their money to pay landlords, food suppliers, utilities, and so forth" Let's examine this: Landlords likely don't have employees, right? True, but they contract out for a lot of work such as: carpet cleaners, painters, HVAC techs, roofers, windows and siding, janitorial, etc. Every single one of these industries will have to raise prices to pay their employees. Food suppliers? Utilities? Same thing. Every single expense that these people have will go up. Every expense that the business owner has in business and in their personal life will go up too meaning they will either give themselves a raise or have to lower their cost of living. Large businesses will go the raise route while small business owners will likely have to take a cut. They still won't be able to afford to eat at a restaurant because of the rise in expenses and the rise in restaurant prices. Restaurants will have to not only pay their employees more, but food costs will rise as well because farmers and related industries have to raise theirs to pay employees. See where this is going yet?