A Simple Theory for Why School and Health Costs Are So Much Higher in the U.S.

The costs of education, health care, and the live performing arts are growing at about the same rate in all the OECD countries—and yet the costs of these services are much higher in the United States. For example, U.S. total educational spending, as a share of GDP, is about is 26% higher than the average of the other OECD countries. A team led by Edward N. Wolff of Bard College points out that because the humans who provide these services aren’t replaceable by machines, costs tend to rise inexorably, and that America got a long head start on spending in the nineteenth century when a rapidly expanding economy led to huge expenditures on universities, hospitals, and cultural institutions.

This entry was posted in Leadership. Bookmark the permalink.

Comments are closed.