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This kind of hand-wavey nonsense is exactly why I have no respect for what passes for rational argument in conventional economics. Let's deconstruct these assu
by TheOtherHobbes 6y ago
This kind of hand-wavey nonsense is exactly why I have no respect for what passes for rational argument in conventional economics.
Let's deconstruct these assumptions:
"Baumol and Bowen pointed out that the same number of musicians is needed to play a Beethoven string quartet today as was needed in the 19th century; the productivity of classical music performance has not increased. On the other hand, the real wages of musicians (as in all other professions) have increased greatly since the 19th century."
1. Yes, string quartets still require four people.
2. This does not mean the "productivity of classical music has not increased", because:
a. String quartets can now make recordings and also play on radio/TV/streaming services, in addition to playing live. This means much larger numbers of people can hear a performance. This translates to ad revenue, streaming income, and sales of recordings. And there is also secondary income of various kinds for various supporting industries, including other forms of media.
b. String quartets can travel much larger distances than they used to be able to, allowing them to play live music over a much wider area than was possible when the fastest mode of transport was a horse. This hugely increases the possible listener base and potential ticket sales.
c. Culturally notable string quartets are likely to play in much larger concert halls than used to be the case, with increased direct ticket income.
d. The classical music industry is far more commercialised. There are numerous festivals and concert series which bring in far more money than they did when owning a pet orchestra was an eccentric hobby for aristocrats.
e. There are far more people than there used to be in the 19th century, and the worldwide classical music audience is much larger than it used to be.
So - this is simply a bad, ignorant example. It's not just wrong, it's flagrantly, wildly, outrageously misinformed, and is based on an almost total lack of insight into an industry that is worth $146 million a year - of which around $90 million is income from streaming.
The other examples are just as ridiculous and trivially incorrect. The productivity of nurses is not defined by the time it takes to change a bandage - ask any ICU nurse - and the productivity of professors is not measured by the time it takes to mark an essay.
How is anyone supposed to take this level of argumentation seriously when there is no evidence the authors made a credible professional effort to understand the economics of their own examples?
And as an advanced exercise for economists - how much has this poor level of economic insight cost the economy?
- asdasdasdas5453 6y ago"The phenomenon was described by William J. Baumol and William G. Bowen in the 1960s." I imagine streaming services were not a thing back then. Also you make fair points in your comments but you confuse the example for the argument. Replace 'String Quartet' by 'waiter' or 'child minder' if you prefer.
- ptsneves 6y agoI think the issue is that you measure productivity as in quantitative physical output instead of in value as driven by supply and demand. Absolute value increases due to inflation even though the supply/demand ratio is the same.
- JumpCrisscross 6y ago> Absolute value increases due to inflation For a meaningless definition of absolute, where it coïncides with “nominal,” yes.
- jldugger 6y agoWell, there was a fairly huge streaming service called FM Radio that had a huge audience at the time.
- teorema 6y agoI had a similar reaction re: professors. Sure, it takes the same amount of time to mark an essay. But it takes much less time to score exams and to administer them. Writing research papers takes much, much, much less time because of word processors, online submission systems, copyediting changes, and so forth. A lot of research itself takes less time to do because of statistical analysis libraries, computerized administration and recruitment, etc etc etc This is actually something I've heard older, very professors lament -- some of them have claimed that when, say, papers took longer to produce, you had more time to think when things were being mailed back and forth, and there wasn't so much of a factory approach to paper writing where they were treated as widgets. I'm not saying I agree or disagree with this necessarily but I'm really skeptical of claims that productivity hasn't risen in certain fields. Now you can get into a discussion of "real" versus "false" productivity gains but that's a little different.