AOC Proves Once Again That She Doesn’t Understand Basic Economics


Wednesday, April 3, 2019

On Monday, April 1st, Representative Alexandria Ocasio-Cortez tweeted about the price of croissants at LaGuardia National Airport and then started advocating for a $15 minimum wage.

Though this wasn’t an April Fools Joke, she was still able to make a fool of herself. In the 167 character tweet, there were multiple laughs to be had by conservatives as the tweet destroyed some of her key legislative ideas.

The main takeaway of this tweet is AOC’s support for more than doubling the national minimum wage from $7.25 to $15 per hour, but it’s the sentence before that people should pay attention to.

On September 27th, 2018, the Port Authority Board approved a minimum wage hike for JFK International, LaGuardia International, and Newark Liberty International airports to $19 an hour by 2023. That will be the highest minimum wage in the nation, according to the New York Times. Of course, businesses must keep a net profit to stay in business, so, with higher fixed costs, come higher retail prices. Moreover, these higher retail prices will, in turn, reduce sales which could lead to layoffs by the employer. This vicious slippery slope can be perfectly seen in a 2017 study by the National Bureau of Economic Research on the minimum wage hike in Seattle, Washington.

The study discovered that the earnings of low-wage employees actually fell, on average, by $125 a month in 2016. It’s no wonder why so many restaurants and retail stores have now exchanged employees in favor of robots for entry-level positions like cashiers.

Furthermore, this article would be remiss if it didn’t include supply and demand, the underlying basis of a capitalistic society.

If there wasn’t a demand for an expensive croissant at LaGuardia, why would there be a place selling them? If the market accepts the overpriced piece of bread, there seems to be no conflict. The business is making a profit and the customers are receiving their croissants. If the market didn’t accept the $7 price tag, the product would have to be removed from the product line or priced at a cheaper rate. Of course, this is boiled down to the most simplistic form, yet the point remains the same: let the market decide which products fail and which products succeed.

If the failure to apply simple economic principles was not enough already, AOC also doesn’t seem to embody her policy suggestions that she laid out within the Green New Deal (GND).

Within the FAQ for the GND, Ocasio-Cortez calls for an “overhaul [of] transportation by massively expanding electric vehicle manufacturing, build[ing] charging stations everywhere, build[ing] out high speed rail at a scale where air travel stops becoming necessary, creat[ing] affordable public transit available to all, with the goal to replace every combustion-engine vehicle.”

So, if she truly believed that climate change was “our WWII” and the idea that we are all going to die in 12 years due to climate change, why didn’t she take an Amtrak train? It seems a bit hypocritical to actively partake in an activity you want to abolish to achieve a pipe dream.

It has become obvious that Alexandria Ocasio-Cortez knows nothing about economics even though she has an economics degree from Boston University. April Fools… not!

Daniel Elmore is a sophomore at Alexander Central High School in Taylorsville, North Carolina. He is the top of his class and is very active in local politics as well as his local food pantry.

The views expressed in this article are the opinion of the author and do not necessarily reflect those of Lone Conservative staff.

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About Daniel Elmore

Alexander Central High School

Daniel Elmore is a sophomore at Alexander Central High School in Taylorsville, North Carolina. He is the top of his class and is very active in local politics as well as his local food pantry.

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