What accounts for the cost disease?

The basic post is too long, but some of it is interesting and here is the best part:

The pattern of Cost Disease seems to be related to things that inextricably require the unsubstitutable labour and attention not just of human beings but of human beings somehow comparable to the buyer. (Americans, for the US focus of most of this discussion.) Education not only requires teachers who are part of the same cultural milieu as their students, but it requires the attention of the students themselves, and attention is inherently expensive. As the only thing that can be expensive in the final Strong Heaven, attention predictably gets more expensive in a culture that moves more and more toward general post-scarcity. Health care similarly requires local human involvement.

That is from Ansuz, via Matthew Fairbank.  And here is Scott Alexander’s survey follow-up post.


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