Government: We believe that you need to pay your workers more because we feel like it's not enough.
Companies: The workers agreed to the pay when they signed on. If you make us pay them more, we cannot afford to pay the workers without raising our rates to levels that people don't want to pay for.
Government: You will pay them more money.
Companies: We can't afford to do that so we will be pulling out of this area and now they will make exactly $0 and now people have fewer transportation options.
Government: We did it, we successfully raised people's earnings to $0! pats self on back for a job well done