Courtesy of NPR’s always engrossing Planet Money podcast, discussing inflation and the various factors that contribute to the rise of the costs of goods and services, pointedly discussing another sector—which I think should not be taken as letting those usual suspects, private equity and their ilk, off the hook for being caught holding the bag—pointedly discussing some of the pain points of veterinary medicine, we learn about prolific economics writer and namesake of the above effect in labour markets.
In collaboration with economist and academic William Gordon Bowen (who also founded the digital library JSTOR), William Baumol (also a prolific sculptor and painter who helped create cultural economics, calling art collecting and patronage a gamble and presaging its fetishisation as an investment , evinced by these animal spirits) described the outcome of stagnant productivity countered with rising wages in certain sectors, which cannot innovate or advance on the same terms as other fields. Enterprises that rely on manufacturing and mass-production or mass-distribution for instance have benefited from technology that allows for automation and removing human labour from the picture. Other industry’s reliant on human expertise and interaction, like veterinarians, concert violinists, barbers, educators and carpenters, are unable to increase their output at scale. And while arguably some trades and professions—especially in the US, teacher—are not so richly compensated, their higher wages are sustained by cross-demand at the expense of profit because of their essential nature and lack of serviceable substitute. Furthermore unwillingness to offer competitive pay would led to a scarcity of expertise and prevents the greater misalignment that would come of no one entering these fields.
synchronoptica
one year ago: Democrats concede (with synchronopticรฆ)
twelve years ago: war-mongering, jackalopes plus more on Germany’s Fateful Day (9 November)
thirteen years ago: the G20 and the US elections, marine parasites plus an R2D2 scooter
fourteen years ago: questionable dental hygiene
fifteen years ago: bisphenol in everything
sixteen years ago: need-to-know news


































