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> but is that true That is literally what Baumol and Bowen wrote about. I suggest you look to their papers for the evidence. Even those who posit that Bowen's
by notacoward 6y ago
> but is that true
That is literally what Baumol and Bowen wrote about. I suggest you look to their papers for the evidence. Even those who posit that Bowen's Rule accounts for a greater share of cost increases in education (trivial to find many papers on this) accept that Baumol's Cost Disease exists. It might not be necessary or happen all the time - nobody but you claimed such - but it's definitely real in some industries or professions.
- lotsofpulp 6y agoHow does that square with stagnating wages for the majority? https://www.advisorperspectives.com/dshort/updates/2020/09/17/updated-u-s-household-incomes-a-50-year-perspective https://www.advisorperspectives.com/dshort/updates/2020/09/1... Is it possible that increases in productivity in other professions can reduce demand for labor in other professions (automation), increasing the supply of workers, which then suppresses wages in other professions? Would that not run counter to Baumol’s cost disease? I appreciate your time in engaging in this discourse. I’m not sure if I will have time to read their papers, but I was interested if there was a simple explanation for why I am wrong that it didn’t pass my initial smell test.