In reality however things are a little more complicated.
http://en.wikipedia.org/wiki/Disposable_and_discretionary_in...
disposable = wage - taxes
Therefore disposable income pays for rent, food, gas... All of which would be needed to alleviate poverty, but I guess that depends on how we're defining poverty.
The lack of a meaningful definition shared by both law and society is the root of much of the consternation over the topic.
People working at minimum wage can find themselves in such situations.
At this time, you can get ahead on MW, if you team up with other MW workers to live together and one person can get enough "family" support to get to the next level. However, our society, being very individualistic, doesn't really recognize this.
It's not a matter of opportunity, it's a matter of choice.
Time and again I've watched those with opportunity squander it, while others lacking opportunity fight to get it (and got it). I've had a 4AM bus driver take my evening C++ class, passing despite often dozing off therein, finding funding despite not having the steep tuition. I've known a chronically bedridden invalid who managed to run a profitable, um, pharmaceutical service from his gurney. I've worked multiple jobs and still learned new skills, even getting hired despite not having the core skill and learning it sink-or-swim. I've watched kids destroy windows while I was fixing their couch. I've seen eminently capable students with amazing affinity to programming fail a beginning C++ course for lack of effort, not understanding. Opportunity IS there; taking it or making it is up to the individual.
Instances of true "poor for lack of opportunity" are exceedingly rare. They have my sympathy and aid; I'm frustrated by the vast numbers who insist they are and in truth aren't.
The artificial rise in wages will not help, as it will be met with a corresponding increase in prices to cover the costs of the wages.
Using your line of reasoning it doesn't actually matter whether the rise in wages is "artificial" or not, your argument is simply "wage rises will not help" As a former recipient of wage rises I have anecdotal evidence that they do. :)
Economies are complex systems looking at one aspect of them in isolation and thinking you can apply a high school level understanding of supply and demand and come up with any substantive insight is frankly misguided.
Also, Henry Ford disagrees with you. http://en.wikipedia.org/wiki/Fordism
The line of reasoning is entirely dependent on the reason for an employer giving more wages. If he needs to give raises to retain talent, it is presumably because the skills he is purchasing can demand a premium, which can be reflected in the prices of the product or service being offered.
If most of the goods and services used by the people most "helped" by the commanded wage raise are themselves wage dependent, then their prices must increase or employment levels must decrease and efficiency of the remaining workers must increase to compensate.
As market prices for goods and services are not that linearly dependent on one factor, this result on employers will inversely affect employers with the least price flexibility; the ones with the least margin, the ones employing the low-income workers.
How does exporting higher profits to China help America exactly?
I suppose the theory is: pay American service workers more, so that they can buy more Chinese goods, so China can become wealthier and build more factories and employ more production jobs, while America gets poorer by continuing to expand its service sector (consumption jobs). Interesting theory.
It doesn't appear to be supported by anything in reality though. Personally my expenditures go to primarily to housing, utilities, travel and food. I'm not sure how any of those boost China's economy directly - Wells Fargo is probably quite heavily invested in China one way or another though.
This "average" consumer spending infographic would appear to back that up. http://www.billshrink.com/blog/1204/consumer-income-spending...
It doesn't break down along income lines which is unfortunate, that information would inform discussions around minimum wage much more. I did find the age break down interesting though.
If raising the minimum wage made any difference, McDonalds would be 5-star restaurant by now.