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Some thoughts on the Cost Disease

Saturday 18 February 2017, 06:40

The lovely and talented Scott Alexander has a posting on Cost Disease: the costs of some things, notably education and medical care especially in the USA, have increased in the last few generations to a really unfathomable extent. He gives detailed statistics, but it's typically about a factor of 10 after accounting for general inflation. Why has this happened? He gives some hypotheses, and in a followup posting shares some ideas contributed by readers, but it's not at all clear what's going on. And it seems like knowing might be valuable, because the fact of this phenomenon's occurrence (whatever the cause) is causing a great deal of misery for a whole lot of people, bearing on many other important issues.

I don't know either, but it made me think of some things.