Money & WorkMental model

A string quartet still takes as long as it did 200 years ago.

William Baumol described it in 1966: in sectors where productivity barely rises, wages must still keep pace or workers leave. So concerts, care, teaching and craftwork keep getting more expensive relative to manufactured goods – without any waste involved.

Useful: When a service outpaces goods in price, that is often this mechanism rather than greed.

Source: de.wikipedia.org

DienstleistungPreise Produktivitaet

Difficulty:

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