Fabulous post on why costs have gone up so much in education and healthcare without a corresponding increase in education or health.
The two graphs describe the problem:
The question an economist would ask is simple:
So, imagine you’re a poor person. White, minority, whatever. Which would you prefer?
- a. Sending your child to a 2016 school?
- b. Or sending your child to a 1975 school, and getting a check for $5,000 every year?
We ask the same question:
Do you think the average poor or middle-class person would rather:
- a) Get modern health care
- b) Get the same amount of health care as their parents’ generation, but with modern technology like ACE inhibitors, and also earn $8000 extra a year