<p>The findings reveal a clear difference between short-term and long-term effects. In the short term, minimum wage increases appear to have negative or limited effects on economic growth and contribute to inflationary pressures. However, in the long term, minimum wage increases have a positive and significant effect on economic growth, supporting the demand-driven and efficient wage arguments. The results show that short-term effects will constrain growth; while the minimum wage shows a positive correlation with inflation, it negatively affects real GDP. This situation leads us to re-examine the universal validity of the Phillips curve, while supporting the demand-driven and efficient wage arguments. This study emphasizes the importance of minimum wage policies for sustainable economic growth while questioning classical macroeconomic theories. Furthermore, variables affecting the knowledge economy, such as human capital, innovation, knowledge accumulation, and technological intensity, are addressed not only empirically but also theoretically in the analysis. Given the significant differences among BRICS countries, the study suggests that policymakers should pursue a nuanced strategy that balances the costs of short-term wage adjustments with the potential for long-term, demand-driven growth.</p>