Why AC is cheap, but AC repair is a luxury
Why AC is cheap, but AC repair is a luxuryThe Baumol Effect and Jevons paradox are relatedAlex DancoNov 03, 202559214ShareIf you live in the United States today, and you accidentally knock a hole in your wall, it’s probably cheaper to buy a flatscreen TV and stick it in front of the hole, compared to hiring a handyman to fix your drywall. (Source: Marc Andreessen.) This seems insane; why?Well, weird things happen to economies when you have huge bursts of productivity that are concentrated in one industry. Obviously, it’s great for that industry, because when the cost of something falls while its quality rises, we usually find a way to consume way more of that thing – creating a huge number of new jobs and new opportunities in this newly productive area.But there’s an interesting…
