While I agree with the general thrust of your argument, I can’t help but notice that there are more than a few assumptions here. First of all, it assumes that all employers are capable of paying higher salaries. Sure, some undoubtedly can (and probably should), but there are likely to be other small businesses who are in no position to pay their staff more — raising salaries may result in job losses.
Secondly, there is absolutely no guarantee that increased disposable income is going to be spent locally — do Seattle residents not shop on Amazon?
And finally, even if they do spend their money locally, who is to say that will result in the creation of high-quality jobs? What if they choose to spend all their extra money in fast food outlets?