☆ The Cost Disease: Why Computers Get Cheaper and Health Care Doesn't PDF / Epub ✩ Author William J. Baumol – 1sm.info


The Cost Disease: Why Computers Get Cheaper and Health Care Doesn't A must read for anyone interestedin the economics of health care Not the most exciting book but the idea s implications are huge. If you ve already read the Wikipedia article on Baumol s cost disease, reading this book won t add much The examples are focused on health care excluding all other service occupations and are written in an innumerate business case study language that obfuscates details and does not form a convincing argument That said, the central idea is thought provoking and somethingpeople should be exposed to. A book that develops a convincing hypothesis on why healthcare costs have exploded over the past few decades, while cars and other consumables have declined in price The first half of the book is academic and reads like a research paper abstract Arguments were well constructed and Baumol provided a lot of data to prove his point, which I definitely appreciate The latter parts of the book where the author collaborated with a few others on the content felt less than well written, and some of A book that develops a convincing hypothesis on why healthcare costs have exploded over the past few decades, while cars and other consumables have declined in price The first half of the book is academic and reads like a research paper abstract Arguments were well constructed and Baumol provided a lot of data to prove his point, which I definitely appreciate The latter parts of the book where the author collaborated with a few others on the content felt less than well written, and some of the examples were superficial for example, the authors devoted an entire Chapter 9 to singing praises for IBM Ehhhh I have mixed feelings on this book The first time I read it, I thought I finally understood why healthcare in the United States costs such an ungodly amount Buuut after reading a couple of other books Priced Out by Uwe Reinhardt, the Price we Pay by Marty Makary it s easy to see there s muchgoing on than labor costs keeping costs high Baumol s book is great to get an understanding of what the cost disease is, but if you want a well rounded view, you have to read a book or two mo Ehhhh I have mixed feelings on this book The first time I read it, I thought I finally understood why healthcare in the United States costs such an ungodly amount Buuut after reading a couple of other books Priced Out by Uwe Reinhardt, the Price we Pay by Marty Makary it s easy to see there s muchgoing on than labor costs keeping costs high Baumol s book is great to get an understanding of what the cost disease is, but if you want a well rounded view, you have to read a book or twoHis book was really well written though This book develops one of the principal explanations for why costs have been increasing significantly on a consistent basis in some sectors health care, education while they have been decreasing in others, especially manufacturing The argument is complex but the basic point is that when some industries are becoming muchefficient, those industries or sectors that are limited in the degree to which productivity can be enhanced will necessarily experience persistent costs increases due to This book develops one of the principal explanations for why costs have been increasing significantly on a consistent basis in some sectors health care, education while they have been decreasing in others, especially manufacturing The argument is complex but the basic point is that when some industries are becoming muchefficient, those industries or sectors that are limited in the degree to which productivity can be enhanced will necessarily experience persistent costs increases due to labor market and other considerations Various details of this general argument are considered along with its policy implications and some good case examples of the cost problem in such stagnant industries.The book is in essence a compilation of papers written around the overall argument Along with the argument, there is much time devoted to reviewing the research that has been brought to bear to test and largely support this argument about health care and education cocsts.This work is valuable for its policy implications for there is a role for regulation in unsuring that the cost disease does not dampen innovation or damage the poor, who are disproportionately affected by it The style is very effective, especially in translating discussions among economists to treatments that areaccessible to general audiences This book was written shortly after the 2010 ACA fight in the United states and it is very much a product of that period.The cost disease concept is really important to understanding a lot of the why the modern economy looks the way it does but it s probably not so complicated as requiring an entire book to explain.An okay but not essential read. The Exploding Cost Of Health Care In The United States Is A Source Of Widespread Alarm Similarly, 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 Rapidly Rising Costs In Service Sectors Of The Economy Once We Understand That Disease, He Explains, Effective Responses Become ApparentBaumol Presents His Analysis With Characteristic Clarity, Tracing The Fast Rising Prices Of Health Care And Education In The United States And Other Major Industrial Nations, Then Examining The Underlying Causes, Which Have To Do With The Nature Of Providing Labor Intensive Services The News Is Good, Baumol Reassures Us, Because The Nature Of The Disease Is Such That Society Will Be Able To Afford The Rising Costs Sometimes I forget how I find the books I buy Usually it is one of two ways I either find the book while browsingor the book is referenced in another book I read I remember seeing The Cost Disease in another book, but I can t really remember which one But I found it on , enjoyed the reviews, and saw that it was relatively inexpensive so I decided to give it a go.The Cost Disease is a heavy,academic work This is not a typical light read in popular economics like Freakonom Sometimes I forget how I find the books I buy Usually it is one of two ways I either find the book while browsingor the book is referenced in another book I read I remember seeing The Cost Disease in another book, but I can t really remember which one But I found it on , enjoyed the reviews, and saw that it was relatively inexpensive so I decided to give it a go.The Cost Disease is a heavy,academic work This is not a typical light read in popular economics like Freakonomics It is very interesting book that tackles the common misunderstandings of our economy.I am a millennial working in higher education with baby boomer parents It seems like every day I am being bombarded with questions about the cost of higher education and health care Both institutions are notorious for their skyrocketing costs over the years The Cost Disease gives us a solid answer to the question In short, health care and higher education will continue to increase, but fortunately the buying power of consumers will continue to increase as well And of course, there is some fine print not included in my short summary.I am sure you can ask a dozen economists the same question and you will get a dozen different answers, but The Cost Disease offers a good, researched response to this huge question Since the Industrial Revolution, labor saving productivity improvements have been occurring at an unprecedented pace in most manufacturing activities, reducing the cost of making these products even as workers wages have risen In the personal services industries, meanwhile, automation is not always possible, and labor saving productivity improvements occur at a rate well below average for the economy As a result, costs in the personal services industries move ever upward at a much faster rat Since the Industrial Revolution, labor saving productivity improvements have been occurring at an unprecedented pace in most manufacturing activities, reducing the cost of making these products even as workers wages have risen In the personal services industries, meanwhile, automation is not always possible, and labor saving productivity improvements occur at a rate well below average for the economy As a result, costs in the personal services industries move ever upward at a much faster rate than the rate of inflation xvii xviii Total health care spending appears to be income elastic In other words, if GDP per capita increases by 1 percent, total health spending per capita will increase by slightlythan 1 percent As it grows richer, a country will spend a growing proportion of its GDP on health 98 The range of such progressive sector business services is remarkably broad and includes items as diverse as business strategy and business operations consulting, statistical and risk calculation, data management and analytics, and even the computer tools used for animated film production All of these activities have seen dramatic productivity growth that can be attributed to the sophisticated technology employed in their production 125 The rising cost of healthcare is a global phenomenon Why Because the relative productivity of labour intensive industries inevitably and inexorably declines Computers get cheaper healthcare doesn t It s a simple idea, now proven by historic data and in need of appreciation The cost disease allows encourages, even affordable increases in spending on health Though incisive, Baumol s book inevitably labours this central argument But to understand trade offs in public spending you ne The rising cost of healthcare is a global phenomenon Why Because the relative productivity of labour intensive industries inevitably and inexorably declines Computers get cheaper healthcare doesn t It s a simple idea, now proven by historic data and in need of appreciation The cost disease allows encourages, even affordable increases in spending on health Though incisive, Baumol s book inevitably labours this central argument But to understand trade offs in public spending you need a firm grasp of the cost disease This book provides a means to that end, and delivers important context for any discussion about healthcare, education, economics and politics


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About the Author: William J. Baumol

Is a well-known author, some of his books are a fascination for readers like in the The Cost Disease: Why Computers Get Cheaper and Health Care Doesn't book, this is one of the most wanted William J. Baumol author readers around the world.