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twoodfinyesterday at 10:53 PM1 replyview on HN

Healthcare, housing, education all have gone up despite increased productivity.

The hypothesis of Baumol’s Cost Disease is that these industries are exactly where we should expect prices to rise because they’re still dependent on low-productivity-growth human labor.


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rglullisyesterday at 11:26 PM

Baumol's Cost Disease is about relative costs. We are talking about productivity enabling absolute reduction in costs. Don't mix them up.

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