While there is a lot more going on, the people who pass laws raising wages have never actually worked minimum wage jobs so they have no idea how the system works in reality. They've never been in danger of having their job automated, or outsourced, or just downsized at all.

So to them its just a funny side effect, while they look at the increased revenue the company as a whole is making after slashing tens of thousands of jobs and consider it an overall improvement.