Baumol’s Cost Disease

Fortunately, we haven't had much productivity growth in manufacturing -- so not much wage pressure. :-}

It depends what type of productivity improvement whether it is labor saving or increases labor demand in this sector.

This is true for sectors without technological change. Health care has a lot of tech change.

True, by and large with some caveats.

We will miss Bill Baumol

I expect the cost of education to rise relative to i-phones .Technology does make superstar teachers widely available, which offsets this.

Spillover may be getting weak.

Baumol's theory is obvious:1st principles of econ. But economists GREATLY overstate its importance in explaining cost growth in education!!

This is a serious problem in education. If you are good at math, why would you want to be a high school teacher?

An example of something that is probably not obvious to non-economists but has been demonstrated to be true

Productivity and price trends are inversely related across industries. It jumps out at you when looking at the data.
-see background information here

Could go either way depending upon labor demand. Unfortunately misconception.

One sees clear evidence in a variety of labor-intensive services -- education, health care, professional orchestras, and so on.