The lines in blue are the sectors where technological innovation is allowed to push down prices while increasing quality. The lines in red are the sectors where technological innovation is not permitted to push down prices; in fact, the prices of education, health care, and housing as well as anything provided or controlled by the government are going to the moon, even as those sectors are technologically stagnant. (View Highlight)
We are heading into a world where a flat screen TV that covers your entire wall costs 100,andafouryearcollegedegreecosts1 million, and nobody has anything even resembling a proposal on how to systemically fix this. (View Highlight)
Note the emotional loading of the interplay of production and consumption here. What do we get mad about? With our consumer hat on, we get mad about price increases — the red sectors. With our producer hat on, we get mad about technological disruption — the blue sectors. Well, pick one; as this chart shows, you can’t have your cake and eat it too. (View Highlight)
(View Highlight)