No, it assumes that in a flexible labor environment in the medium term, a business will adjust to the value of the worker. If the minimum wage goes up to $20 tomorrow, I may not let go of a lot of my temp employees today, but I will certainly do so in time. This isn't rocket science - this is economics 101. And I say this as someone who supports a gradual rise in the minimum wage (ie, a legislative solution that would link it to the CPI seems like the best way to take it out out of the hands of future legislators who want to play politics) - but the idea that there is no cost to increasing the minimum wage is silly.
Also, the "small percent of the total cost of delivery" is is a red herring; labor cost as a portion of total delivery cost varies greatly according to industry. To use a silly example, if the minimum wage was increased to $30 tomorrow, you don't think McDonald's starts firing employees?
Also, the "small percent of the total cost of delivery" is is a red herring; labor cost as a portion of total delivery cost varies greatly according to industry. To use a silly example, if the minimum wage was increased to $30 tomorrow, you don't think McDonald's starts firing employees?