Since Nigel doesn't specify who the republicans he personally knows and who have said that, nor what they mean by it - I will speculate for you..

In this article, we see the direct labor cost increases that will effect the state.

If you take what "republicans in general" mean by "the cost is far higher" - you would have to do a little more math. Since zero skill jobs like gas station attendants, bussers at your local restaurants, and graveyard shift inventory stockers at your local grocery store would all have a higher cost of labor - and these employees create no increase in sales, productivity or efficiency just by being paid more - there will be tens of thousands of small businesses who have to raise prices to pay for the higher cost of labor.

It's forced inflation.

It has an exponential effect in every sector.

Sure, some people are "paid more" short term - but it will "cost more" for everyone long term.