It seems like a terrible response to me. He criticizings Krugman for (rightfully?) attacking a minimum wage study, but doesnt provide any evidence from other studies.

She makes some bare asssertions herself, then quits. Ok, but Krugman's point is that you dont have actual evidence beyond the theoretical; and she didnt prove otherwise.

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My best guess, is that there isnt any actual proof. Seattle is supposedly attempting to study the effects, so maybe we'll have some actual data to rely on later. Right now though, it seems like we're in the dark.

Honestly, my biggest concern is that businesses who pay more than minimum wage will raise their prices for sport. Like, attorney's fees doubling or something because more money is in circulation, even though their actual costs didnt increase. I dont know if that effect would totally negate the wage change though, so thats speculative too.