When a person has more money in their pocket, they are apt to spend it. With those who have barely scraped by on a low minimum wage, this increase will allow them more financial freedom which then will strengthen the economy. In cities where they minimum wage has been raised drastically, they have seen tremendous boosts to their economies, rather than the detriment that many conservatives predicted.
It is often said that raising the minimum wage will cause businesses to bankrupt and a general collapse of the economy in the region. In reality, things do not play out this way. When wages are raised a moderate amount it does not cause harm to businesses, which tend to be well-cushioned to deal with such rises, and there is more money in the general economy which tends to lead to a small but significant boost in local finances.
It has been proven that raising the minimum wage to an actual living wage improves the economy. It does not hurt it. For the working class actually spends the money that they earn for they use that money to purchase day to day living expenses and that spending goes right into the economy. This is unlike the money given to the rich for they put that money into a bank account and very often that bank account is offshore so that they do not have to pay taxes on it.
Raising the minimum wage in California shouldn't hurt the state's economy. It might actually help it. There are many people working minimum wage jobs and raising their wages would put more money in their pockets, thus helping boost the economy. The more money people have the more they will spend.