2 ms·
Baumol's cost disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease TV and automobile manufactur
by missedthecue 4y ago
Baumol's cost disease
https://en.wikipedia.org/wiki/Baumol%27s_cost_disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease
TV and automobile manufacturing are a lot more productive than they were 50 years ago. A teacher can still only teach one classroom at a time.
Therefore, service industries like healthcare, education, and even construction get less and less efficient relative to manufacturing and production industries, which enjoy massive increase in efficiency year after year. This is partly why an 80 inch 4K TV is eventually going to cost $500 and a 4 year college education is going to cost $500,000.
- andrekandre 4y agoif i understand it correctly, its supposed that overall wage increases mean other industries have to compete to get/keep workers but they dont have effeciency increases like manufacturing so prices continue to rise it makes logical sense, but i wonder if it really is wage competition causing this when wages have been mostly stagnant for the past 50 years? https://www.thebalancecareers.com/industries-with-the-most-wage-stagnation-4176877 https://www.thebalancecareers.com/industries-with-the-most-w...