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by carusooneliner
2897 days ago
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Some explanation why it's so, courtesy this obituary of William Baumol:
https://www.wsj.com/articles/baumol-diagnosed-the-disease-of... (paywall) An excerpt from the article: "Dr. Baumol’s insight in the 1960s was that costs inevitably rise fastest for things that are difficult to automate, including medical care, garbage collection and the live performance of a Mozart string quartet. It came to him in the middle of the night. “It was 4 in the morning,” he recalled in an oral history. “I suddenly woke up and said I know why those costs are going up! I got up, wrote down a few notes, and went to sleep again.” His theory became known as Baumol’s Cost Disease." |
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