It also fails to account for the fact that health care is, in a sense, an ultimate superior good—there is no level of income at which people don’t want more health, and their demand scales with more income. This combines with the fact that we don’t have good ways to exchange money for being healthier. (The same applies for intelligence / education.) I discussed this in an essay on Scott’s original post:
It also fails to account for the fact that health care is, in a sense, an ultimate superior good—there is no level of income at which people don’t want more health, and their demand scales with more income. This combines with the fact that we don’t have good ways to exchange money for being healthier. (The same applies for intelligence / education.) I discussed this in an essay on Scott’s original post:
https://medium.com/@davidmanheim/chasing-superior-good-syndrome-vs-baumols-or-scott-s-cost-disease-40327ae87b45