The way to "square the circle" is to accept that there will be an increase in prices. Since inflation is currently at a level that is unhealthily low (according to most economists), this increase in prices will be beneficial to the economy. The increase in the minimum wage will boost the economy and will also increase profits - a win-win situation (see http://galactic-hero.com/2017/06/24/can-raising-the-minimum-wage-boost-the-economy/ .