In this episode of Econ 102, Erik Torenberg and economist Noah Smith debunk the trope of cost disease affecting service sectors like healthcare, education, and housing. They discuss how manufacturing productivity has flatlined since 2008, while service productivity has been rising due to technology. They explore the reasons behind rising costs in healthcare and education, noting that healthcare costs are increasing more slowly, and college costs are decreasing due to reduced demand and awareness of student loan burdens. They also touch on Trump's drug price controls, the debate between Tyler Cowen and Scott Alexander on USAID, and the culture war between Scott Alexander and Curtis Yarvin, emphasizing the importance of moving past the "woke versus based" mentality.
