Why Are The Prices So Damn High?: Summary and Review

Why Are The Prices So Damn High?

Why Are The Prices So Damn High? by Eric Helland and Alex Tabarrok

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Why Are The Prices So Damn High?

Review

A deep dive into The Baumol Effect, otherwise known as “Baumol’s Cost Disease”.

Basically, prices are very high because we are incredibly productive. All that productivity creates a massive surplus of income, and that income can’t really go anywhere because everything else is so cheap, so we end up dumping the surplus into ever costlier education, healthcare, real estate, etc. since those industries haven’t been automated yet.

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