New Geography's The End of the Road for Eds and Meds argues that the health care and education industries are "at the end of their growth cycle."
Because of this, cities and regions that have based their economies on these industries will likely face weak prospects over the next decade. Key quote:
"Whether the end of the great growth phase in eds and meds comes 1, 5, or 10 years from now can't be predicted. But come in the reasonably near future it will, and that's when the bulk of the cities that put all their chips in those baskets will receive a very rude awakening."
I'm not as pessimistic about these industries - especially health care, where demographics favor continued growth.
But what really caught my eye was the chart below highlighting the inflation rates for health care and tertiary education.
Regardless of what you think of the prospects for these industries, it's clear the inflation rates for college tuition and medical care are not sustainable.
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