> Drastically increasing costs for unskilled laborers wouldn't kill the companies - say, McDonalds wouldn't go out of business or double their burger prices because of that, as long as their competitors get the same labor cost increase.
I have to admit I don't quite follow. How would everybody getting the same labor cost increase prevent price hikes?
There would be a price hike for all companies, but it would be much, much smaller than the increase in wages - the price of a burger (unlike, say, price of a haircut) is mostly independent of the cook's wage, and to the extent that it matters, there are valid avenues for automation that put a cap on it.
I have to admit I don't quite follow. How would everybody getting the same labor cost increase prevent price hikes?