raising the minimum wage does not cause inflation, at least not in the sense that i use the word. raising the minimum can raise prices though. if a company has 20 workers working at $5/hour and minimum wage is brought up to $5.50, some changes will have to be made. this is where the good nature of the minimum wage law goes wrong. how will the company compensate for this price control on labor? one option is to raise the price of their product and keep all their workers. another is to fire 2 workers, keep the price of their product at the same level, and lower production. in other words, minimum wage laws kill production.