AOC-backed $30 minimum wage plan could backfire in unexpected ways, experts warn
An ambitious proposal backed by Rep. Alexandria Ocasio-Cortez to raise the federal minimum wage to as high as $30 an hour is drawing red flags from economists who warn the...
By Fox News · Fox News
An ambitious proposal backed by Rep. Alexandria Ocasio-Cortez to raise the federal minimum wage to as high as $30 an hour is drawing red flags from economists who warn the proposal could backfire on the people it's meant to help. A new survey published by the Employment Policies Institute found broad skepticism among U.S. economists toward steep minimum wage hikes, with many warning the policy could lead to unintended ripple effects like job losses for low-wage workers and higher prices for all Americans. Specifically, these economists oppose proposals that push the minimum wage to more than $20 an hour. The findings come as progressive lawmakers, including Ocasio-Cortez, push for higher federal wage mandates to address rising costs of living. The federal minimum wage has not been adjusted since 2009 despite an annual average inflation rate of 2.57%, according to the Bureau of Labor Statistics. AOC-BACKED $25 MINIMUM WAGE PLAN SOUNDS GREAT — BUT AT WHAT COST? "We surveyed more than 160 American economists and for proposals over $20 an hour, 96% said they oppose it," Employment Policies Institute research director Rebekah Paxton told Fox News Digital. The findings reflect broader resistance to steep minimum wage hikes, with nearly three-quarters of economists opposing a $15 wage and opposition increasing sharply at higher proposed levels. Paxton said this view cuts across political lines. "The economists we surveyed spanned the political spectrum — Republicans , Democrats, Libertarians and those who didn’t identify with a party — but they broadly agree that raising the minimum wage above $20 an hour would be harmful for employees, businesses and American consumers," she said. Economists pointed to a range of potential downsides for raising the minimum wage from the current $7.25 hourly rate, particularly for lower-skilled workers. A majority said higher minimum wages would likely reduce job opportunities for young people, with up to 95% predicting fewer youth jobs a…