The Cost Disease: Why Computers Get Cheaper and Health Care Doesn’t

Amazon.com Price: $25.00 (as of 11/10/2019 09:34 PST- Details)

Categories: Administration and Medicine Economics, Books, Business and Money, Economic Conditions, Economics, Education and Teaching, Funding, Health Care Delivery, Higher and Continuing Education, Inflation, Medical Books, Microeconomics, Schools and Teaching, Subjects, Theory

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The exploding cost of health care in the USA is a source of widespread alarm. In a similar way, the upward spiral of college tuition fees is cause for serious concern. In this concise and illuminating book, the well known economist William J. Baumol explores the causes of these seemingly intractable problems and offers a surprisingly simple explanation. Baumol identifies the “cost disease” as a major source of abruptly rising costs in service sectors of the economy. Once we keep in mind that disease, he explains, effective responses grow to be apparent.

Baumol presents his analysis with characteristic clarity, tracing the fast-rising prices of health care and education in the USA and other major industrial nations, then examining the underlying causes, which have to do with the nature of providing labor-intensive services and products. The news is good, Baumol reassures us, since the nature of the disease is such that society will be capable to come up with the money for the rising costs.

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