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Schools and hospitals also suffer from Baumol's cost disease. As the production of computers, TVs, food, clothing, and other items gets more efficient, the rel
by projektfu 7y ago
Schools and hospitals also suffer from Baumol's cost disease. As the production of computers, TVs, food, clothing, and other items gets more efficient, the relative cost of industries with low productivity growth skyrockets. Also including symphonies, theater companies, etc., and this leads to them becoming unaffordable in the presence of substitute goods, like movie tickets and recorded music.