President Obama’s new appointment for chairman of the Council of Economic advisors is Alan Krueger, known for an infamous study that argued that minimum wage increases increase employment in fast-food restaurants. The paper contradicted the one of the two basic tenets of economics, the Law of Demand, which says that as the price of a commodity (labor in this case) increases, people buy less.
Liberals loved the study, but given its astonishing and absurd finding, they should not have been surprised when it turned out to be junk. Its data were essentially random. The study that debunked it (which is quite accessible to the layman), concluded:
The data base used in the New Jersey fast food study is so bad that no credible conclusions can be drawn from the report.
These serious mistakes and omissions have resulted in a study doomed to become a textbook example of how not to collect data.
The Law of Demand and the Law of Supply are the two basic tenets of economic theory. They are literally taught on the first day in any introductory economics course. Appointing a demand-curve denier as the president’s chief economist is comparable to appointing a flat-earther to head the US Geological Survey.