March 1, 2026
Accordng Baumol's Cost Disease, the reason we pay more to our babysitters is not because they are doing a better job.
Accordng Baumol's Cost Disease, the reason we pay more to our babysitters is not because they are doing a better job.
A basic part of Broadway economics is the "cost disease" that plays "catch" from higher wage industries that benefit from more productivity.
To explain why healthcare costs are increasing, we can just look at Beethoven's String Quartet #14 and Baumol's Cost Disease.