This common argument is a good illustration that econ is a soft social science with low standards. For one thing, it ignores that people aren't just producers but also consumers. And those with lower salaries unfortunately need to spend a larger percent of their incomes on necessities.
It all depends. For instance, corporations may be able to punish populaces who successfully campaign for a better minimum wage, with attacks like capital flight. If successful, the unemployment rate may indeed increase. In other situations, it may decrease.
I'm reminded of this political cartoon... (http://www.dollarsandsense.org/archives/2008/0508toon.html)
It all depends. For instance, corporations may be able to punish populaces who successfully campaign for a better minimum wage, with attacks like capital flight. If successful, the unemployment rate may indeed increase. In other situations, it may decrease.