06 May, 2017

William Baumol, whose famous economic theory explains the modern world, has died - Vox

William Baumol, whose famous economic theory explains the modern world, has died - Vox: "The consequence is that rising productivity in the manufacturing sector of the economy inevitably pushes up the cost of labor-intensive services like live musical performances. Rising productivity allows factories to cut prices and raise wages at the same time. But when wages rise, music venues have no alternative but to raise ticket prices to cover the higher costs.

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