"One of the most important charts about the economy this century"
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... if you haven’t read about Baumol’s Cost Disease, you should.
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... nice piece in
@socialcapital
snippets on how Baumol’s cost disease affects long term economic growth.
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@adamnash
The Canadian commenter seems to be using a novel, inverted definition of the term “regulatory capture”
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@Loh
There’s good evidence of a growing bifurcation in the economy around “deflationary” verticals driven by tech that get cheaper every year, and inflationary verticals that don’t.
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@adamnash
What film and music didn’t make the list? Art and Entertainment always gets short-changed.
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@itsmanhattan
... tricky question. Do we go with the inflation-adjusted price of a movie at the theater or as a proportion of my
@Netflix
subscription? 🤔
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@adamnash
@joshelman
When I look at this I see Needs vs. Wants. Needs have gone up significantly while producers race to the bottom to incentivize further purchases of wants.
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@adamnash
Those services all more expensive to begin with, and some have increased at double the rate of cheapened household goods.
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@adamnash
That chart also shows what quote-unquote privilege unlocks, and why that has such an outsized impact on what people are able to achieve.
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@adamnash
Any bets that internet access will speed up and costs will decline with Net Neutrality repealed?
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@adamnash
If you look closely prices of "needs" went up except clothing and prices of "wants" went down. Are we more focused of wants than needs?
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@adamnash
Physical goods vs labor intensive services. Except textbooks, which is a physical good in which supplier has a lot of market power.
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@adamnash
I wonder why Travel & Tourism Services were left out. Maybe because they were under 50% but more than 0%?
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@adamnash
I think Baomol’s cost disease is another possible explanation. All of those relatively expensive things are those where labor productivity has not increased as fast as many other industries.
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@adamnash
Services get more expensive as stuff gets cheaper. Baumol's Cost Disease rides again...
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