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1) If we got rid of minimum wage tomorrow, no company would immediately lower their wage to $5 an hour. This would be a gradual thing.
2) If companies are paying less wage for one person, they can use the extra money to pay for the wage of another person. That's one less person unemployed. Now image that x 100.
3) Okay so now companies are lowering their wages and most of you would say these people can no longer afford the cost of living. BUT say this company didn't hire an extra person, they would use this saved money towards resources to make more of their product. In economics, when a company has more of their product, they lower to price to sell more. That means prices of goods are also lower to accommodate the lowered wages.
This is all obviously small scale, but imagine that x 100. That means more people employed and the price of goods lowered. This would not be something that would be seen overnight, and probably in the short run it will be tough.
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