Why prices in only three parts of the economy grow faster than inflation

There’s only three parts of the economy where prices have consistently outpaced inflation: education, health care (including prescription drugs) and real estate (in some areas) over long periods of time.

I often try to explain why to friends, but have not articulated it well. Arnold Kling says why succinctly:

…these are all sectors in which public policy subsidizes demand and restricts supply.

Yep.

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One thought on “Why prices in only three parts of the economy grow faster than inflation

  1. Pingback: Ben Shapiro on Health Care | Our Dinner Table

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