It has been more than 24 hours since I passed along, here at the Cafe, businessman Mike Long’s generous offer of business advice to anyone who believes that monopsony power is so abundant in real-world markets that minimum-wage legislation is justified. Mike’s offer is to supply the advice and guidance necessary to enable people – mainly, academics – to launch businesses to seize the profit opportunities that their assertions of monopsony power imply. So far, no one has accepted the offer.
This lack of acceptance might, of course, be due to the fact that too little time has lapsed since the offer was first posted. Or it could be due to the fact that those who justify minimum-wage legislation by asserting that reality is roiling with monopsony power are in fact insufficiently confident in their assertions of monopsony power.
Regardless of the reason, the offer will remain open indefinitely.
Dear readers, please do keep in mind that anyone who asserts the reality and relevance of monopsony power while also stubbornly refusing to take personal steps to take advantage of the profit opportunities that would exist if these assertions are correct is someone who is either insufficiently expert to know if monopsony power exists or someone who makes such an assertion carelessly (or both). Either way, that person’s policy prescriptions on this matter deserve to be ignored. The advice of such people is unreliable.