It's circular because you and Valnoomba will not admit that for any wage X there are people who are not employable because they are simply not worth that wage. Seems quite obvious the higher you raise X, the more people fall into that category.
It's a barrier to entry into the workforce. It is not a very high barrier at 7.25, but it starts getting up there as you go higher.
No one fucking argued that, unless they're arguing that $7.25 IS that - which would be false. (and I personally think $15/hr is ludicrously high to jump to, BTW - I'd personally like to see it tiered with COL factored into regions so we've got cheap areas with a minimum of $8/hr (i.e. AZ), average places at $10/hr and expensive areas at $12/hr - frankly as per Mist's example - Wal-Mart is going to $10/hr by 2016 even the places that WANT TO PAY PEOPLE SHIT are realizing it's bad for the bottom line at this point)
Look at the breakdown of the businesses that this applies to in Khane's article, those are all industries with extremely high margins. In fact they're industries where you can find examples of people being expected to do similar work getting paid in excess of $20-25/hr to do the same jobs in many cases.
And to a degree it's also circular because you seem to think that FOR A GREAT AMOUNT (THIRTY FUCKING PERCENT) of Americans they have zero room to improve past that - that THEY'RE the entire reason behind their own plight, not that there's ANY possibility that businesses have been complicit in such - especially when you've got evidence from people like Papa John flat out saying he was abusing the contract employment laws to avoid having to worry about FICA and such. I'll more than willing to admit SOME helpless people exist - but they're in the minority - again, with my years of hiring people I've probably hired two thousand or more people and can count people that fell into that nonsense in the 1-2% range, and independent of whether they were paid minimum wage before or not - some people are just bad workers, period - not just minimum wage workers.
And "look at what happened in the recession" is a fucking terrible metric - when everyone has less buying power people buy less (which results in less employment) - SHOCKING. Why not look at the precedent of other minimum wage increases in history ALL OF WHICH HAVE HAD EFFECTS THAT WERE EITHER POSITIVE OR NOT FELT AFTER A YEAR OR TWO.
Fact: Every single time one has happened what you prognosticate does happen to a degree - for the first year or two - businesses tighten up their hours and belts to reacquaint to the new payroll - but after that adjustment period? Everything pretty much goes back to normal - a few businesses falter and a few businesses fill the void they leave because those businesses were already on the edge and got pushed over by the changes - but overall nothing substantial changes. Shit, I was around for a 0.75 hike during my working years, it wasn't even a discussion topic for anything we'd do about it - we gave all our employees 0.75/hr extra and started new people $1/hr higher and didn't even lose a beat. (Hell, we actually posted a gains in profit that year)
But please, keep beating your drum with "feels data" and stuff that isn't actually based on historical precedent (or completely tangential precedent in the case of the stupid recession "example")