I just love how everyone look at the short-term costs and ignore the long-term gains.  Yes, wage increases will cost more at first, but those higher wages mean a larger tax base to pay for things like K-12 education, colleges & universities, and local goverments—all of which are paid for by taxes.  Not to mention the fact that people with higher wages have more disposable income for leisure activities that support local businesses.

Pulled from the Department of Labor's website :
 -  A raise for minimum wage earners will put more money in more families' pockets, which will be spent on goods and services, stimulating economic growth locally and nationally.
 - Academic research also has shown that higher wages sharply reduce employee turnover which can reduce employment and training costs.

*http://www.dol.gov/featured/minimum-wage/mythbuster