(Replying to PARENT post)

This is a classic case of Baumol's cost disease. There isn't really a way for productivity to increase in the child care sector, you're always going to need a similar ratio of workers to children, but those workers also need their wages to keep up with inflation. The way it plays out in the US is everyone loses: the employees are underpaid, the employers are low-margin, and it is still too expensive for families. Child care companies can't pay the workers a fair wage while remaining profitable and keeping prices low enough for families, so we end up in this awful equilibrium where it sucks for everyone.
๐Ÿ‘คblactuary๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

Sounds like it's an industry that should be provided as a public service then (or at least subsidized), not something that a free market can sustain.

https://www.nytimes.com/2021/10/06/upshot/child-care-biden.h...

๐Ÿ‘คRafuino๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

Who is down-voting a simple description of the economic phenomenon that plagues the industry, a description noting that it doesn't work for anyone?
๐Ÿ‘คblactuary๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

> Baumol's cost disease.

I don't think wages in the childcare industry are increasing noticeable relative to wages in other sectors. As a person mentioned elsewhere, other factors such as rental prices and insurance probably add more to the cost than wages.

๐Ÿ‘คanonymouskimmer๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0