Have you ever wondered why the costs of your brand-new TV or computer keep going down, but healthcare and education costs keep going up? Below is a chart to motivate your thinking a bit more: This anomaly is known as Baumol’s cost disease. Baumol was an economist who in 1960s was trying to understand the economics of arts. He noticed that while musicians did not get more productive with time, they still made more money than their historical counterparts.
Baumol’s curse
Baumol’s curse
Baumol’s curse
Have you ever wondered why the costs of your brand-new TV or computer keep going down, but healthcare and education costs keep going up? Below is a chart to motivate your thinking a bit more: This anomaly is known as Baumol’s cost disease. Baumol was an economist who in 1960s was trying to understand the economics of arts. He noticed that while musicians did not get more productive with time, they still made more money than their historical counterparts.