I would rather see the money go into education, so instead of being stuck at a minimum wage job, those workers will have a chance at a real career.
The problem is that the economy will catch up to the raise eventually. Most businesses will start charging more to compensate for the increased labor costs and everyone making more than minimum wage will now have less spending money.
Higher minimum wages do not drain the economy [1]. Those wages are fed back into buying more goods, driving the economy from the roots.
Also note that Australia locked in their minimum wages in the 80s, and are among the highest in the world for both median and average networth. [2]
I would prefer better higher education, or at least affordable higher education, but addressing the minimum wage vs cost of living is not something to be swept under a rug.
The problem is that the economy will catch up to the raise eventually. Most businesses will start charging more to compensate for the increased labor costs and everyone making more than minimum wage will now have less spending money.