The Artists’ Disease (Pssst! – It’s Why You’re Poor)

“Baumol’s cost-disease (sometimes more prosaically referred to as the Baumol-Bowen effect) is well-known among economists and arts administrators. First described by economists William J. Baumol and William G. Bowen in 1966, the main symptom of the disease is this: labor costs in the performing arts will always inexorably rise, and at a faster rate than other industries. That’s because in most industries, technological advances allow for increased productivity without an increase in labor. This doesn’t happen in the performing arts, though.”