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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Trinchero who wrote (64328)5/9/2008 3:15:46 PM
From: TimF  Respond to of 542597
 
One of many reasons why the relative price of services has moved up compared to goods, is that services are less likely to get traded. A good international market in medical services will help control costs. Its no panacea (its not like people could, or would want to, travel for all their medical care) but its a positive factor.



To: Patricia Trinchero who wrote (64328)5/9/2008 3:46:42 PM
From: neolib  Read Replies (1) | Respond to of 542597
 
It will be interesting if (when?) American college students head to India for cheaper degrees.

Unfortunately, one-on-one service industries have not experienced the productivity growth of other industries, so things like health care and education see higher inflation in the USA. However, they have so far been more immune to foreign competition, which is also a factor in the higher inflation.


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