2 ms·
To put a name on this, it's the Baumol effect, https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect. Essentially, as product
by czinck 2y ago
To put a name on this, it's the Baumol effect, https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect. Essentially, as productivity increases in most industries (from automation), it drives up labor costs in the industries that can't be automated (healthcare, education, performing arts, etc), which drives up the price of those services (healthcare), or drives down the quality to find a market clearing price (increasing student to teacher ratios).