From a wages perspective, but doesn't the same math that you just described also apply to the cost of production?
It's kind of like how when people go to Switzerland and then they don't ever go to a cafe, because it seems ridiculous to take $7 of the money you earned back in the States, or in China, and then spend it on a cup of coffee. The marginal difference between a cup of coffee and a cup of wine also decrease, so it locks in higher consumption.
On the durable goods side, you are competing with farther-away places that have lower costs. It's why all the "maker" shops moved out of San Francisco and into Portland. It's not possible to economically produce handmade bikes in SF anymore. The only companies able to "export" are tech startups.
Edit: Production costs are generally a small fraction of sales prices and the salary of workers at farms and factory's well below that.
The US produces more durable goods now than at any point in history mostly though automation. Little of that is in SF, but there really are places in the US where you can rent a decent apartment for 400$/month. Or, where the median sale price for a home is less than 90k vs 770k in San Francisco county.
When it comes to coffee shops rent is often there #1 cost, in some cases it's more than 1/2 there total costs. When your rent is 50,000+$/month and your limited to people within walking distance who can just as easily go across the street, you’re stuck with the salary squeeze. Bump minimum wage and some of those competitors might fail which lowers your completion and reduces the retail demand in the end the books still balance.
From an overall economic perspective there is a lot of infrastructure in people and stuff supporting the wants of people making 100+k/year. Bumping minimum wage changes the equation so the economy focuses more on the wants of lower income workers and more on the highest brackets. Consider a store that might see 1 sale per day vs 1 per minute. There are lots of knock on effects with higher advertising budget of car companies that sell 20k vs 100k cars etc. But, also lower housing costs in major city's and higher costs in the out suburbs etc.
PS: Arguably this is vary good in the long term. Consider, the one off economy of the rich leads to stagnation because they don't want mass produced goods.
It's kind of like how when people go to Switzerland and then they don't ever go to a cafe, because it seems ridiculous to take $7 of the money you earned back in the States, or in China, and then spend it on a cup of coffee. The marginal difference between a cup of coffee and a cup of wine also decrease, so it locks in higher consumption.
On the durable goods side, you are competing with farther-away places that have lower costs. It's why all the "maker" shops moved out of San Francisco and into Portland. It's not possible to economically produce handmade bikes in SF anymore. The only companies able to "export" are tech startups.