Unhappy voters are suffering from “Baumol’s disease”
- Posted on August 14, 2026
- By Financial Times
- 6 Views
- 1 min read
Baumol's disease explains the paradox of rising public expenditures without service improvement. This economic phenomenon, illustrated through classical music production costs, reveals why citizens perceive tax increases despite stagnant or declining government service quality. The theory demonstrates how labor-intensive sectors struggle with productivity gains, forcing organizations to allocate more resources while delivering equivalent results, ultimately creating voter frustration and dissatisfaction with public institutions.
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