The Cost Disease

Why Computers Get Cheaper and Health Care Doesn't

William J. Baumol

Recommended By

Book Synopsis

"The Cost Disease" by William J. Baumol provides a comprehensive analysis of the economic phenomenon known as the "cost disease." Examining various industries ranging from healthcare and education to the performing arts, the book explores why costs tend to rise faster in certain sectors compared to others.

Baumol argues that the cost disease arises from the inherent nature of labor-intensive industries, where productivity growth is constrained compared to sectors that have experienced technological advancements. This results in a disproportionate increase in costs, leading to challenges in resource allocation and efficiency.

The author delves into the historical context and examines the consequences of the cost disease on economic growth, income inequality, and public policy. Baumol emphasizes the implications for society as sectors afflicted by the cost disease, such as healthcare and education, play crucial roles in overall well-being and societal advancement.

Through in-depth analysis and compelling research, Baumol offers insights into the cost disease phenomenon and proposes strategies to address its impact. Drawing on economic theory and empirical evidence, the book prompts readers to rethink conventional approaches to managing costs and find innovative solutions to mitigate the effects of the cost disease.

"The Cost Disease" serves as an enlightening resource for economists, policymakers, and anyone interested in understanding the dynamics of rising costs in labor-intensive sectors and its far-reaching implications on society, productivity, and economic development. Baumol's articulate explanations and thought-provoking perspectives present a compelling case for addressing the challenges posed by the cost disease to ensure a sustainable and prosperous future.

Explore More Books

See All
Obvious Adams
How to Talk So Kids Will Listen & Listen So Kids Will Talk
The Wager
Musashi
Destined For War
Who We Are and How We Got Here
The Adventures of Huckleberry Finn
Dirt to Soil
King Lear
The Blue Sweater
God's Debris
A Splendid Exchange
The (Honest) Truth About Dishonesty
Nudge
Neuromancer
The Great Mental Models
American Nations
Incognito
Kochland
Ringworld
The Sacred Mushroom and the Cross
Eating Animals
The Jewish Century
Something Like an Autobiography
The Unbearable Lightness of Being
The Art of  Scientific Investigation
The Fourth Turning
Technofeudalism
Physics of the Future
Stories of Your Life and Others
The Big Score
The Man Who Solved The Market
Recapturing The Spirit Of Enterprise
Slouching Towards Bethlehem
Creativity, Inc.
Building the Intentional University
The Hour Between Dog and Wolf
The Structure of Scientific Revolutions
Math, Better Explained
The Unquiet Grave
Bad For You
Scaling People
The Boy Who Harnessed The Wind
What is Life?
Road to Wigan Pier
In Over Our Heads
Prosperity
Fewer
The Lizard King
Social Cognition
A Mind At Play
The Essays of Schopenhauer
The Dream of Reason
End of Illness
Stumbling on Happiness
Automate This
The 4 Hour Body
Investment Biker
Creative Selection
The Doors of Perception
Citizen Coke
Thermoinfocomplexity
You
Who
Adult Children of Alcoholics
The Gospel of Wealth
A Father First
James Turrell
Where Good Ideas Come From
Sex, Murder, and the Meaning of Life
Judgment in Managerial Decision Making
The Hydrogen Sonata
Midnight In Chernobyl
Cryptonomicon
Secrets of Closing the Sale
The Power Broker
Charged
Tools and Weapons
Deep Medicine
Tribe
Think Again
Getting It Done
Rise of the Robots
The Global Macro Edge
Entangled Life
Conscious Business
Taxes Have Consequences
The Visual Display of Quantitative Information
The New Jim Crow
The Ordeal of Civility
The Little Bitcoin Book
Happiness
Biography of the Dollar
Future Forward
The New One
Breaking Out of Beginner's Spanish
Man's Search for Meaning
Loonshots
The Underdog Founder
Prisoners of Geography