"They'll just raise prices if thy raise the minimum wage."

[Isun]

Which is exactly what corporations want. They know if they can pay others less than they can force others to accept less. Leading to lower wages. That is why republicans and the corporations have worked so hard to kill off the unions with right to work states (which leads to lower wages) and other laws (similar to what Walker passed in Wisconsin) to further decrease the influence of government unions.

That is why our economy isn't performing as well as it should. Lower wages lead to lower demand which of course leads to lower employment.

In your scenario, both will end up employed at higher wages if we have a higher minimum wage.