Tuesday, February 13, 2018

Mark Perry Has Never Heard of William Baumol

Ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rwise why would he write this nonsense:
The chart above (thanks to Olivier Ballou) is an update of a chart we produced last year about this time, and shows cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 percent changes since January 1997 in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 prices of selected consumer goods and services, along with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 increase in average hourly earnings in this version … Blue lines = prices subject to free market forces. Red lines = prices subject to regulatory capture by government. Food and drink is debatable eicá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r way. Conclusion: remind me why socialism is so great again.
The reason that prices of certain services have risen relative to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 price of manufactured goods is socialism? There could be no ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r explanation. I guess Perry has never heard of William Baumol’s cost disease:
The example Baumol and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 late William G. Bowen made famous is that of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 string quartet. The number of musicians and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 amount of time needed to play a Beethoven string quartet for a live audience hasn’t changed in centuries, yet today’s musicians make more than Beethoven-era wages. They argued that because cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 quartet needs its four musicians as much as a semiconductor company needs assembly workers, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 group must raise wages to keep talent—to keep its cellist from chucking a career in music and going into a better-paying job instead. The effect now known as Baumol’s Cost Disease is used to explain why prices for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 services offered by people-dependent professions with low productivity growth—such as (arguably) education, health care, and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 arts—keep going up, even though cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 amount of goods and services each worker in those industries generates hasn’t necessarily done cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 same.

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