Economics 101 Still Works

The economist Herbert Stein, chairman of the Council of Economic Advisors under Richard Nixon, once quipped,

Most of the economics that is usable for advising is at about the level of the introductory undergraduate course.

One lesson from such courses is that minimum wage laws reduce employment, so this is reassuring:

I critically review the recent findings regarding the effects of minimum wages on employment. Contrary to often asserted statements, the preponderance of the evidence still points toward a negative impact of permanently high minimum wages.

From Jesus Fernandez‐​Villaverde at the University of Pennsylvana.