blactuary

15 ms·

1. 241.▲
   by blactuary 4y ago

   If that is the case that min wage laws are a major cause then it is definitely a case of baumol, because the wages would be increasing beyond the underlying productivity due to external factors. We expect wages to rise with gains in product
2. 242.▲
   by blactuary 4y ago

   Who is down-voting a simple description of the economic phenomenon that plagues the industry, a description noting that it doesn't work for anyone?
3. 243.▲
   by blactuary 4y ago

   Of course they aren't, like I said above the workers are way underpaid. The Baumol effect means that wages have risen more than the underlying increase in productivity, which like I said can't really increase in child care, you ne
4. 244.▲
   by blactuary 4y ago

   I agree, given what I laid out it's not something the market can provide
5. 245.▲
   by blactuary 4y ago

   This is a classic case of Baumol's cost disease. There isn't really a way for productivity to increase in the child care sector, you're always going to need a similar ratio of workers to children, but those workers also need