Cost Disease, USAID Debate, and is Curtis Yarvin Trapped in 2020
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Jun 4, 2025
Delve into the perplexing world of cost disease, where healthcare and education costs have been reshaped by slow growth and tech innovations. Discover how AI could reimagine education through personalized tutoring, as well as the ongoing debates surrounding student loans and pharmaceutical pricing. The hosts tackle the complexities of inflation metrics and the effectiveness of foreign aid, while also reflecting on the socio-political implications of Curtis Yarvin’s controversial thoughts and the broader need for progress amidst cultural shifts.
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insights INSIGHT
Shift from Manufacturing to Service Productivity
Manufacturing productivity in the U.S. flatlined around 2008, ending decades of growth driven by technology and outsourcing.
Since then, service sector productivity growth has taken the lead, fueled by digital transformation and IT advancements.
insights INSIGHT
AI Could Solve Education
Technology, especially AI, is poised to revolutionize education by enabling personalized one-on-one tutoring at scale.
This could finally solve longstanding educational challenges that MOOCs and online courses failed to address.
insights INSIGHT
Healthcare and College Costs Stabilize
Contrary to popular belief, healthcare and college costs are no longer rising faster than average costs; healthcare prices have slowed and college tuition, adjusted for aid, has declined since 2006.
This change reflects a drop in demand and people refusing to pay inflated prices, forcing providers to adjust.
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The Great War, a Violent Peace, and Democracy's Forgotten Crisis
Adam Hochschild
In 'American Midnight,' Adam Hochschild delves into the untold history of World War I in the United States, focusing on how the government and society responded to the war. The book explores the suppression of dissent, the rise of xenophobia, and the violent crackdown on civil liberties during this period. Hochschild examines the broader implications of these events on American democracy and society.
The diamond age
Or, A Young Lady's Illustrated Primer
Neal Stephenson
The novel is set in a near-future world where nanotechnology has revolutionized society. It follows Nell, a young girl from a poor background, who receives an interactive educational book called the 'Young Lady's Illustrated Primer'. This book, designed by John Percival Hackworth, is intended to provide a personalized education and becomes a central element in Nell's life. The story explores themes of education, social class, ethnicity, and the impact of technology on human society. The novel is known for its complex narrative, intersecting storylines, and its depiction of a world deeply divided along political, ethnic, and cultural lines[2][3][4].
This week, Noah Smith and Erik Torenberg explore persistent economic myths and recent developments—from cost disease in services like healthcare and education to stagnating manufacturing productivity, rising higher education costs, drug pricing policies, and student loan debates—while also reflecting on broader intellectual shifts driven by culture wars and foreign aid discussions.
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SEND US YOUR Q's FOR NOAH TO ANSWER ON AIR: Econ102@Turpentine.co
Healthcare & Education Cost Trends Reversing: Healthcare price growth has slowed significantly since 2009 and is now growing slower than average costs.
Technology's Role in Services: AI potentially solving education through personalized one-on-one tutoring (referencing "The Diamond Age").
Student Loans & Market Dynamics: Marginal students are dropping out of college, reducing demand.
Pharmaceutical Pricing: Americans actually pay less on average for pharmaceuticals due to cheaper generics.
Cultural Commentary: Discussing intellectual debates between prominent thinkers (Tyler Cowen vs. Scott Alexander on foreign aid, Scott Alexander vs. Curtis Yarvin on governance), emphasizing the importance of not getting trapped in the cultural moment of 2020-2021.
"Econ 102" with Noah Smith and Erik Torenberg 
