Alex Tabarrok - Prizes, Prices, and Public Goods
Dwarkesh Podcast
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Understanding the Bommel Effect
This chapter explores the Bommel effect, which describes the rising prices in stagnant sectors such as education and healthcare due to persistent low productivity. It highlights the challenges faced by the labor market amidst technological advancements and automation, emphasizing the need for skill development and reevaluation of educational paths. The discussion also contrasts historical trends in pricing and labor dynamics, offering insights into how economic stagnation influences various industries.
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