At one point, they report among a number of "main empirical findings" that (page 3):
Increases in the minimum wage also generate a "ripple effect", leading to pay raises for workers who previously earned wages above the minimum wage.It is difficult to understand how Card and Krueger can even be considered economists with such beliefs. If one does not believe in the law of supply and demand for the labor market, can one believe in the law of supply and demand, at all, for any market?
As if to prove that they are not only attacking mainstream economic thinking in their book, but have advanced problems with Austrian economists, Card and Krueger specifically go out of their way to state that they are,"[b]orrowing from the natural sciences" their method of research.
Of course, Nobel Prize winning Austrian economist F.A. Hayek in his brilliant book, The Counter-Revolution of Science , demolished the notion that the methodology of the natural sciences could be used in the field of economics. He returned to this most important topic in his Nobel Lecture:
It seems to me that this failure of the economists to guide policy more successfully is closely connected with their propensity to imitate as closely as possible the procedures of the brilliantly successful physical sciences — an attempt which in our field may lead to outright error. It is an approach which has come to be described as the "scientistic" attitude — an attitude which, as I defined it some thirty years ago, "is decidedly unscientific in the true sense of the word, since it involves a mechanical and uncritical application of habits of thought to fields different from those in which they have been formed." I want today to begin by explaining how some of the gravest errors of recent economic policy are a direct consequence of this scientistic error.In short, President Obama is about to nominate to the Treasury, for Undersecretary, Economic Policy, an "economist" who doesn't believe in the law of supply and demand, and appears not to have a clue as to the proper methods of investigation for the world of economics.
Ladies and gentlemen, this nomination is a disaster. I fear the policies that will come out of Treasury.