Economists Oppose AOC-Backed Minimum Wage Hikes Above $20 an Hour

A proposal backed by Rep. Alexandria Ocasio-Cortez to raise the federal minimum wage as high as $30 an hour faces strong opposition from economists. They warn the plan could harm the low-wage workers it aims to help.

The Employment Policies Institute published a survey of more than 160 U.S. economists. It found broad skepticism toward steep minimum wage hikes. Many cited risks like job losses for low-wage workers and higher prices for consumers. The economists specifically opposed increases above $20 an hour.

Progressive lawmakers including Ocasio-Cortez seek higher federal wage mandates to combat rising living costs. The federal minimum wage stands at $7.25 an hour, unchanged since 2009 despite average annual inflation of 2.57%, per the Bureau of Labor Statistics.

"We surveyed more than 160 American economists and for proposals over $20 an hour, 96% said they oppose it," research director Rebekah Paxton told Fox News Digital.

Nearly three-quarters of economists opposed a $15 wage, with resistance growing at higher levels. Paxton said the views crossed 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 listed potential downsides from hikes above the current $7.25 rate, especially for lower-skilled workers. A majority predicted fewer job opportunities for young people. Up to 95% foresaw youth job losses at levels over $20 an hour.

Industries with thin margins face particular risks. "Small businesses would likely have the hardest time adapting, but certain industries with tighter profit margins, like hospitality and restaurants, could be hit particularly hard," Paxton said. "Economists told us it would reduce jobs and make it more difficult for those businesses to operate."

Many respondents expected businesses to turn to automation. As many as 97% said companies would replace worker tasks with robots and other machines at higher wage levels.

The survey also raised inflation concerns. A majority said higher minimum wages would lift prices on goods and services. Up to 84% predicted cost increases for consumers above $20 an hour.

"A lot of lawmakers and activists say affordability is the reason for proposing these high minimum wage hikes," Paxton said. "But what we’re finding is that not only could this cost jobs and reduce hours, it could also increase automation and raise the cost of living."

Nearly all economists, up to 98%, said small businesses would struggle to survive higher wage mandates.

Many questioned if the policy would deliver real wage gains. "We’re seeing economists are generally concerned about whether this policy actually delivers meaningful wage benefits," Paxton said. She pointed to alternatives like earned income tax credits that supplement pay without burdening employers.

Supporters say higher wages match inflation and living costs. The survey casts doubt on whether the approach would cause more harm than good.