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Look up the Baumol effect. When productivity rises in one sector, there is an increase in wages in other sectors. The flip side of the coin is over time we spe
by nilsbunger 4y ago
Look up the Baumol effect. When productivity rises in one sector, there is an increase in wages in other sectors.
The flip side of the coin is over time we spend more of our income on the things that don’t have increasing productivity. Think of housing, education, health care, etc