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Supporting industries losing economies of scale drives up costs. If you have fewer tailors, local cloth suppliers become insolvent. This leads to the few tailor
by gaterin 4y ago
Supporting industries losing economies of scale drives up costs. If you have fewer tailors, local cloth suppliers become insolvent. This leads to the few tailors having to import cloth and increase prices.
- stavros 4y agoThat makes sense, thanks. I guess the high end becomes slightly more expensive, while the low end becomes massively cheaper.
- jerf 4y agoClosely related to Baumol's cost disease: https://en.wikipedia.org/wiki/Baumol%27s_cost_disease https://en.wikipedia.org/wiki/Baumol%27s_cost_disease If one option becomes many multiples cheaper, anything that can't also get that cheap will almost inevitably rise in expense as a result.