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Because of the Baumol Effect[1]. People can live without TVs, but the inability to receive health care ruins, and in many cases ends, lives. This is Economics
by kelseyfrog 11mo ago
Because of the Baumol Effect[1].
People can live without TVs, but the inability to receive health care ruins, and in many cases ends, lives.
This is Economics 101.
[1] https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect
- salawat 11mo agoEconomics 101 also notes that your view is still quite lacking, as the Baumol effect is far from being settled as 100% the bloody cause, as there is significant non-supply side effects that may account for shifts from the progressive sectors to the stagnant sectors, not the least of which being off-shoring. The dismal science continues to deliver hand waving and prognostications more than satisfactory answers.
- kelseyfrog 11mo agoIt sounds like any economic answer wouldn't suffice because it would have to explain 100% of the effect. Did I get that right?