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Speaking of the minimum wage [2], four full weeks have passed since I first shared the generous offer of the successful and skilled businessman Mike Long [3] to help inexperienced academics who believe that monopsony power is real to start their own businesses in order to take advantage of this presumed profit opportunity. Amazingly, not a single person has taken Mike up on his kind offer.
The offer remains open, yet I must say that the empirical record by now is growing full and powerful that those academics who proclaim the reality of monopsony power in the market for low-skilled workers seem to be quite unsure of their hypothesis. I propose that henceforth these people – none of whom is willing to risk his or her own financial resources on the hypothesis of the real-world prevalence of monopsony power – be ignored and their calls for higher minimum wages be dismissed as talk that is as cheap for them as it is dangerous for low-skilled workers.