2 ms·
That reminds me of Baumol's Cost Disease[1]. Some industries become more efficient due to advances in technology (e.g. manufacturing and agriculture), but other
by singron 7y ago
That reminds me of Baumol's Cost Disease[1]. Some industries become more efficient due to advances in technology (e.g. manufacturing and agriculture), but others do not (e.g. healthcare, education). Those other industries become more expensive in real terms since you have to pay people more to do the same job.
E.g. in this case, the US economy is so productive, and manufacturing is so efficient, that repair (which isn't made much more efficient by technology) becomes more expensive.
1: https://en.wikipedia.org/wiki/Baumol%27s_cost_disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease