Between illusion and reality

David Card, a professor at the University of California, Berkeley, who won this year’s Nobel Prize in Economics, said in an interview in 2006 that “a rise in the minimum wage has little effect on employment.” It was a statement that destroyed the illusion of economics. Before the card research in the early 1990s, it was a classic of economics that “a rise in the minimum wage reduces the demand for labor by companies, which reduces employment and increases the unemployment rate.” New Zealand first introduced the minimum wage in 1894, Australia in 1896, and England in 1909. spread to In the United States, Massachusetts first introduced it in 1912, and in 1938, it was implemented nationwide according to the Fair Labor Standards Act. We made a law in 1986

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