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The modern doctor is far more productive. She's healing 10 highly productive units. In fact I think that could generalise for all service based work. Providi
by Lerc 7y ago
The modern doctor is far more productive. She's healing 10 highly productive units.
In fact I think that could generalise for all service based work. Providing a service enables people to not have to do the thing themselves. As such the productivity of the service can be considered a factor of the productivity of the people they are providing the service for.
- anonuser123456 7y agoThe Baumol effect does not imply that the value of the doctor is not higher today. It just means that on a per-unit basis physicians are not more productive (and possibly less today thanks to EHR). A doctor can still only see 1 patient every 15 minutes just like they could 50 years ago. A BMW factory that produces 100 cars/day might be more valuable than a Toyota factory producing 100 cars/day, but it wouldn't be more productive on a per unit basis.
- Lerc 7y agoThat seems more like an argument to say that a per-unit measure of productivity is meaningless than anything else.
- mrfredward 7y ago>The modern doctor is far more productive. She's healing 10 highly productive units. Hence the doctor will charge each patient more money. That's the Baumol effect.