The problem with your argument is that, in many cases, businesses cannot afford to simply raise prices thanks to competition.

Take, for example, the employer that Mr. Illes works for, or the place where he bought the chimichangas. They can’t afford to raise prices at the risk of losing customers to places like Wal-Mart. Therefore, they are more likely to cut hours or cut employees.

Even so, let’s say they do raise prices. Who does that end up hurting the most ? The people like Mr. Iles who can least afford it.

So businesses will cut hours, fire people, and if it gets really bad (in any sort of manufacturing operation) will move offshore. Or they’ll just hire illegal immigrants under the table because it’s a better gamble to try to survive illegally than go out of business legally.

And in the long run, those businesses who raise prices will lead to price inflation which then makes that new minimum wage just as low as the old minimum wage.

That’s “so what”. It hurts business, it hurts workers, and it hurts the economy.

Capitalism – i.e. the commodification of labor for the purpose of concentration of wealth is inherently vicious – something your point out very well and with no credibly justification to back up your revolting disdain for the poor.