The cost of trash removal goes up, in part at least, because labor productivity in auto manufacturing goes up.

Question

Quizplus · Accepted Answer

This is an example of Baumol's cost disease, where sectors with lower productivity growth (like trash removal) see cost increases due to wage pressures from sectors with higher productivity growth (like auto manufacturing), as wages tend to rise across the board in response to overall economic growth and productivity improvements.

The Cost of Trash Removal Goes Up, in Part at Least