By: Nash Herman | Commentary, Complete Colorado
In economics, it is well understood that the larger a business becomes, the more cheaply it can produce goods or services due to lower relative fixed costs, more technical know-how, and increased specialization.
Why then is Colorado’s largest industry in terms of employment–health care–only becoming more expensive?
Subsidies inflate costs
Let’s back up. In 1990, Colorado’s largest industry by employment was retail, which also dominated most of the rest of the country’s employment as well, along with manufacturing.
Along the way retail and manufactured goods became cheaper for consumers, as expected, relative to inflation.
READ THE FULL ARTICLE AT COMPLETE COLORADO
Editor’s note: Opinions expressed in commentary pieces are those of the author and do not necessarily reflect the opinions of the management of the Rocky Mountain Voice, but even so we support the constitutional right of the author to express those opinions.