"Cost disease" refers to the tendency for high productivity in the service sector to lead to lower costs in those industries.

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"Cost disease" actually refers to the phenomenon where productivity growth in some industries is lower than the average rate of productivity growth in the economy as a whole, leading to rising costs and relative price increases in those industries. This is particularly common in sectors like healthcare, education, and the arts, where labor costs are a significant proportion of overall costs and productivity growth is constrained by the difficulty of automating or outsourcing many tasks.

"Cost Disease" Refers to the Tendency for High Productivity in the Service