> Most restaurants derive most of their cost from labor. With basic income in and minimum wage out, you can pay people much less than you had to before.

That's plainly false.

No one's going to wash dishes at Chain Restaurant #12 for 15 cents an hour, not even if the government is giving them $10,000/year. Infinite increase in their current effort for a 1% increase in annual income?

That's like the most pathologically slanted example of diminishing returns possible.