As stated, any economist will tell you that producers look for a specific profit margin and when you increase fixed costs they are going to pass those costs on to consumers. Opportunity cost applies - if that price rise heavily affects demand for a good/service then the producer will cut back or move to a different industry. That being said, very few industries are affected by minimum wage increases other than food service and retail. Competition endures the same increase. Will consumers pay more for items like fast food and clothing? Yes. Will the cost be unbearable? No. I doubt Californians will notice their Big Mac costing $4.58 instead of $4.20. Will people lose jobs? Very few. The market will set a natural minimum wage on its own, which is not much higher than the new minimum in most cases. While this distorts free markets it doesn't do so heavily. Keep in mind it doesn't reach $10/hr until 2016.