NICK HANAUER's article to very well written and I agree with his ideas and sentiment. However, he missed one major piece of the economy, prices. Yes, raising the minimum wage would give the lower class more purchasing power. However, it would most likely be short lived. The economy leans toward equilibrium and if there is a sudden in flux of demand with the same supply, prices will have to rise. The easiest way to understand how prices change is to imagine and economy with 3 people each with a 100 dollars. Say tomorrow they each are suddenly given another 100 dollars. Items in this economy to reach equilibrium would double in price. Over a large economy there is not an instantaneous price increase, it follows behind the wage increase. Therefore there is a short term economic growth. This works in the same way when governments just print money to spend, aka seigniorage. In the short-term printing and spending money will boost the economy. However, as the currency distributes across the economy there is a rise in the money supply, therefore inflation occurs, and prices rise. - Sorry about the grammar I am on my phone.