If minimum wage is increased, it's not just the Walmarts that will have to increase the amount being paid. As I stated earlier in this thread, my employee's don't make minimum wage, but if minimum wage was raised to $12 - $15, they would suffer from wage compression, and find themselves as part of the new group of people working for minimum wage, as well as face the possibility of fewer hours/ reduction of one or more positions.
Small business owners don't always have the luxury of the same margins as Big Box stores. Currently, due to the fluctuations in the business market, my payroll costs are out of line (high) during the first quarter of the year. We continue to overstaff because we don't want our employees to suffer due to the vagrancies of our business. If minimum wage was increased by 25%, I couldn't justify continuing in this manner. It just wouldn't be feasible.
This is not a "the sky is falling" statement. It is the reality of my business. I don't know what the solution is to the loss of middle income jobs, but I do believe that increasing minimum wage will lead to wage compression and the further slowing down of job growth. Many employers will take another look at the books, and try to make due with fewer resources and employees.