I remember working at a kitchen being paid $x an hour, and when minimum wage was increased to just below that many of the cooks were mad to find themselves earning just above minimum wage. It was an interesting corollary I hadn't thought about before and while I wasn't mad it did feel like my value was depreciated.
When this happens, you should more easily be able to find another job that pays more or negotiate a raise, because employers know you now have better alternatives than you did before.
