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The Limit of Service Efficiency
Unlike goods manufacturing, where technology lowers costs, the service sector is extremely sensitive to wage growth. A haircut, a medical exam, or repairs require human time, which does not become faster due to progress.
This is "Baumol's cost disease": prices for services rise faster than inflation because they cannot radically increase labor productivity. Your budget is doomed to outpaced cost growth in this category.
#macroeconomics #inflation