AOC-backed $25 minimum wage plan sounds great — but at what cost?
Democrats' push to more than triple the federal minimum wage to $25 an hour is reigniting debate over whether a one-size-fits-all policy can work across the U.S. economy.Critics warn the...
By Fox News · Fox News
Democrats' push to more than triple the federal minimum wage to $25 an hour is reigniting debate over whether a one-size-fits-all policy can work across the U.S. economy. Critics warn the new proposal would do more harm than good, pointing to risks such as inflation, job losses and added strain on small businesses. Lawmakers and advocacy groups have for years demanded a significant increase in the federal wage floor. A plan backed by Rep. Alexandria Ocasio-Cortez , D-N.Y., and supported by a coalition of more than 100 organizations would mark one of the most aggressive increases to the federal minimum wage in recent history. ONE LITTLE-KNOWN MEETING HELPS DECIDE WHAT AMERICANS CAN AFFORD — AND WHAT THEY CAN’T Minimum wage laws vary widely across the United States. The federal minimum wage has remained at $7.25 an hour since 2009 despite rising costs of housing, food and healthcare. Before that, Congress last raised the wage through a three-step increase passed in 2007, boosting it from $5.15 to $5.85 in 2007, $6.55 in 2008 and finally landing at $7.25 in 2009. If the federal minimum wage were to create that same earning and spending power today, that figure would need to be $11.34 an hour when adjusted for inflation . As a result of this disparity, the gap between states has widened in recent years, with some more progressive enclaves adopting base wages more than double the federal minimum. Some have raised hourly wages above $15, while others remain at or near the federal baseline, often reflecting differences in cost of living , local economic conditions and political leanings of different jurisdictions. The gap is stark. California and New York have minimum wages above $16 an hour, while states like Georgia and Wyoming remain at or near the federal minimum of $7.25, with some maintaining a base rate even lower than the nationwide standard. Georgia’s $5.15 an hour minimum wage is largely symbolic, as federal law requires most workers to be paid at least the fede…