Cost disease is just prices

Matt Yglesias argues Baumol’s 'cost disease' is a misleading label for straightforward relative‑price arithmetic: sectors with faster productivity growth see falling prices; inherently labor‑intensive sectors rise. Calling it a 'disease' obscures the prosperity story behind why services like in‑home help get pricier as average wages climb. — Reframing 'cost disease' clarifies debates on healthcare, education, and caregiving costs by focusing on tradeoffs and productivity rather than pathology.