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Politics : The Trump Presidency
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To: TimF who wrote (65864)4/10/2018 11:41:58 AM
From: neolib  Read Replies (1) of 360011
 
That's not a cost disease issue.

It is most certainly cost disease. Instead of flat productivity per worker, its decreasing productivity per worker. Baumol's cost disease is fundamentally about the ratio of productivity changes in one sector vs other sectors, or I think more specifically about one sector vs the aggregate of all sectors. The original example of a concert violinist was used to make that point, and in that example it was chosen because it was deemed to have been approximately flat. But flat, down or up isn't the issue, its how one sector evolves vs the others. flat down or up just shifts it a bit as well.
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