Comment Re:Fundamentally, why so expensive? (Score 1) 84
I suspect that the answer involves a hard look at where the wealth ends up, which is likely why there's limited appetite for tugging at that thread; but what I don't grasp about the Baumel explanation is why the cost goes up relative to the typical ability to pay; rather than mostly staying level.
The fact that productivity largely hasn't budged is certainly an explanation of why professors or nurses haven't followed the cost of transistors or TVs; but if something like education's cost increases are being driven by what they need to pay people who could work in a different industry; why do people who do work in that different industry not see the cost as more or less constant in relative terms, rather than steadily creeping up over time?
The fact that productivity largely hasn't budged is certainly an explanation of why professors or nurses haven't followed the cost of transistors or TVs; but if something like education's cost increases are being driven by what they need to pay people who could work in a different industry; why do people who do work in that different industry not see the cost as more or less constant in relative terms, rather than steadily creeping up over time?