Scott explores the recent British economic decline, examining various statistics and theories about its causes and impact. Longer summary

This post discusses the recent economic decline in Britain, analyzing various statistics and theories about its causes. Scott examines GDP data, productivity trends, wage stagnation, and currency value changes, while considering factors like Brexit, real estate market issues, and R&D investment. He presents different perspectives from commenters and experts, highlighting the complexity of the situation and the difficulty in pinpointing exact causes. Shorter summary

Scott Alexander follows up on his critique of a book about the Baumol effect, presenting data that challenges the book's claims about rising wages driving cost increases in education and healthcare. Longer summary

Scott Alexander follows up on his review of Tabarrok and Helland's book about the Baumol effect and rising costs in education and healthcare. He expresses disappointment with Tabarrok's response to his critique and further explores the issues. Scott presents data showing that wages in high-productivity sectors and for doctors and teachers have not risen as much as claimed, which challenges the book's central thesis. He also clarifies his understanding of how the Baumol effect can make things less affordable for individuals even if not for society as a whole. The post analyzes various data sources and graphs to support these points, maintaining a critical stance towards the original book's arguments. Shorter summary

Scott Alexander reviews a book attributing rising service costs to the Baumol effect, finding it convincing but raising some concerns about conflicting data and affordability issues. Longer summary

Scott Alexander reviews the book 'Why Are The Prices So D*mn High?' by economists Alex Tabarrok and Eric Helland, which attributes rising costs in services like healthcare and education to the Baumol effect. The authors argue that as productivity increases in some sectors, wages rise across all sectors, making labor-intensive services relatively more expensive. Scott finds their case convincing but raises some concerns, including data on stagnant real wages, conflicting information on professional salaries, and the apparent decrease in affordability of services like education, which the Baumol effect shouldn't cause. He seeks further clarification on these points to fully accept the Baumol effect as the primary explanation for cost disease. Shorter summary

Scott analyzes wage stagnation since 1973, examining various explanations and concluding that while wages have risen 40-50%, there is still significant decoupling from productivity due to multiple factors. Longer summary

This post analyzes the apparent wage stagnation and decoupling from productivity since 1973. Scott examines various explanations, including measurement issues, demographic changes, inflation calculations, increasing inequality, and policy changes. He concludes that wages have actually risen about 40-50% since 1973, but there is still a significant 50% decoupling from productivity. The main factors are increasing wage inequality (40%), inflation miscalculations (35%), and labor vs. capital inequality (15%). Scott breaks down potential causes and their relative importance, while noting several remaining questions and uncertainties. Shorter summary

Scott Alexander examines the phenomenon of cost disease, where costs for basic services like education and healthcare have increased dramatically without corresponding improvements in quality or wages. Longer summary

Scott Alexander explores the concept of cost disease, where costs for essential services like education, healthcare, and housing have increased significantly over the past few decades without corresponding improvements in quality or wages. He presents data showing how these costs have risen much faster than inflation, while worker salaries in these fields have remained stagnant or even declined. Alexander considers various potential explanations for this phenomenon, including market failures, increased regulation, lawsuit fears, and changing risk tolerance. He argues that this cost disease is a major factor behind many current political and economic debates, and expresses concern about its impact on living standards and economic progress. Shorter summary

Scott Alexander explores the puzzling lack of GDP impact from women's significant entry into the workforce, considering various explanations and economic implications. Longer summary

Scott Alexander examines the puzzling lack of impact on GDP trends despite women's significant entry into the workforce between 1935 and 1985. He explores possible explanations, including data inaccuracies, low-resolution data, substitution of unpaid labor, or contradictions to economic theory. The post also addresses whether women's workforce participation lowered male wages, drawing parallels to debates about immigrant labor. Scott notes the absence of evidence for wage depression and expresses confusion about the economic implications of this major labor force change. Shorter summary