Summary of The Cost Disease
Why Computers Get Cheaper and Health Care Doesn’t
Americans will soon spend 62% of their incomes on health care, but they will be able to afford it.
In 1966, economist William J. Baumol and his colleague William Bowen introduced their “cost disease” concept. Since then, their hypothesis, which explains why health care and education expenses always will increase, while manufacturing costs will fall, has proven accurate. Baumol says that their theory could “be the longest valid forecast ever to emerge from economic analysis.” He tracks why these fees constantly skyrocket – and it’s not the nonsense that poorly informed politicians spread. He also clarifies why people will continue to be able to afford health care and education. getAbstract recommends Baumol’s important, expert explanation to those seeking to learn why some costs rise while others fall, and how to extrapolate such costs to construct an idea of future expenses.
In this summary, you will learn
- Why the price of personal services such as health care and education rises faster than the rate of inflation
- Why the price of manufactured products will decrease
- Why society will always be able to afford health care and education
- How to control future health care costs
Comment on this summary
By the same author
David S. Landes et al.
Princeton UP, 2010
William J. Baumol
Princeton UP, 2002
Contained in Knowledge Pack:
Knowledge PackLife SciencesHere’s an X-ray view.
Customers who read this summary also read
Friedrich A. Hayek
University of Chicago Press, 2011
Basic Books, 2015