Prices would adjust and everyone's purchasing power would revert back to what it was before the increase. Your standard of living would be the same while your paycheck has more digits.
This is false, because you are ignoring the fact that raising the minimum wage flattens the distribution of wages. Purchasing power decreases, but only low-wage-earners income increases. higher-spending people feel more of a crunch, and lower-income people get more of the benefit
price increases impact higher-spenders more than lower-spenders