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I welcome this. Anything that makes consumer electronics more expensive acts counter to the Baumol Effect.

How scarce does memory have to get before it makes health care half as expensive?

Where do you think the IT costs for doctor's workstations are going to be redirected?

I always thought it was more about differences in productivity between sectors. If the Baumol effect made service sector wages increase, would wouldn't ineffencies do the inverse?

It makes all electronics more expensive. This makes every service more expensive as well.

It sounds like effenciencies in manufacturing sectors lead to more costly medical services, and ineffencies in manufacturing sectors lead to costly medical services. Am I understanding correctly?

Who said efficiencies in manufacturing sectors lead to more costly medical services?

William J. Baumol the namesake of the Baumol Effect[1]. Generally it is

> the tendency for wages in jobs that have experienced little or no increase in labor productivity to rise in response to rising wages in other jobs that did experience high productivity growth

Specifically, manufacturing sectors have increased productivity and service sectors haven't.

1. https://en.wikipedia.org/wiki/Baumol_effect

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