mccormick


bookshelf

The Cost Disease by William J. Baumol

Sometimes I forget how I find the books I buy. Usually it is one of two ways: I either find the book while browsing Amazon or the book is referenced in another book I read. I remember seeing The Cost Disease in another book, but I can’t really remember which one. But I found it on Amazon, enjoyed the reviews, and saw that it was relatively inexpensive so I decided to give it a go.

The Cost Disease is a heavy, more academic work. This is not a typical light read in popular economics like Freakonomics. It is very interesting book that tackles the common misunderstandings of our economy.

I am a millennial working in higher education with baby boomer parents. It seems like every day I am being bombarded with questions about cost of higher education and health care. Both institutions are notorious for their skyrocketing costs over the years. The Cost Disease gives us a solid answer to the question. In short, health care and higher education will continue to increase, but fortunately the buying power of consumers will continue to increase as well. And of course, there is some fine print not included in my short summary.

I am sure you can ask a dozen economists the same question and you will get a dozen different answers, but The Cost Disease offers a good, researched response to this huge question.