Quotulatiousness

January 12, 2022

QotD: Baumol’s cost disease in architecture and furniture

Filed under: Architecture, Economics, History, Quotations — Tags: , , , — Nicholas @ 01:00

Remember, the Baumol effect [Wiki] happens when new technology makes some industries more productive. Since the high-tech industries are so lucrative, wages go up. Then low-tech industries have to raise their wages so that their workers don’t all desert them for the high-tech industries. But since low-tech industries aren’t improving their productivity, they just because more expensive, full stop.

If stonemasonry is a low-tech industry, and new high-tech industries are arising all around it, stonemason wages could get prohibitively high (compared to everything else) until nobody wants to hire them anymore. This would create pressure for architectural styles that require as little masonry (or, generalized, human labor) as possible.

This has gotten me thinking about furniture.

I got a new place recently and have been looking for furnishings. Sometimes I look at people’s furniture Pinterests. If Pinterest is any kind of representative window into the soul of the modern furniture-enthusiast, people really like Art Nouveau. […] As far as I can tell, you can’t buy any of these anywhere — they’re a combination of antiques and concept pieces. The people who pin these and pine after these end up getting minimalist Scandinavian furniture with names like UJLIBLĂ–K, just like everyone else.

Anything that even comes close to the above costs high four to five digits. I don’t know if this is because it’s antique, because it requires more labor, or both.

I’m harping on furniture because it avoids a lot of the complicating factors in architecture. There isn’t some vague collection of “elites” making our furniture decisions. It’s a pretty free market! There are lots of normal middle-class people spending big chunks of money on furniture, lots of them really really like the old stuff, and the old stuff is still either unavailable or unaffordable. It seems like it used to be affordable — it wasn’t just kings and dukes who had the old Art Nouveau stuff — but for some reason that’s changed. I think Baumol effects offer a tidy explanation here, and if we use them to explain furniture, then they start looking really attractive for architecture.

I want this one to be true, because it exonerates our civilization. If we could make things like the Art Nouveau furniture above, or the Taj Mahal, relatively cheaply and easily, then the question of why we aren’t doing that demands an answer. If it’s just a quirk of basic economics, then our civilization is fine, and maybe we can hope that stoneworking technology advances to the point where we can do this kind of thing again cheaply.

Scott Alexander, “Highlights From The Comments On Modern Architecture”, Astral Codex Ten, 2021-10-04.

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